Choosing the right accounting software is an important step for businesses that are aiming to digitalise their operations. However, with the mass variety of accounting solutions available in the market, business owners are often spoilt for choices when deciding which accounting software they should invest in.
We have done a quick comparison between Xero and Quickbooks, two of the highly popular cloud-based accounting software in Singapore.
| Feature | Xero | Quickbooks |
| Numbers of users | ✔ | – |
| Direct bank feeds | ✔ | – |
| Mobile App | ✔ | ✔ |
| User Interface | ✔ | ✔ |
| Add-on | ✔ | – |
| Multiple Currency | – | ✔ |
| GST Increase Preparedness | ✔ | – |
| Optical Character Recognition (OCR) | ✔ | – |
| Local Office | ✔ | – |
| Pricing | – | ✔ |
1. Number of Users
Having a large number of users for the accounting software provides a much-needed convenience. Employees with authorised access can directly perform tasks within the software itself, without having to seek help from their co-workers. For instance, employees filing for business expenses can simply scan receipts on their personal smartphones. They need not have to ask someone else to file it in their place.
With Xero, you can register an unlimited number of users. This is an exceptional feature!
On the other hand, Quickbooks allows you to start with a simple package for two users. You can also choose from their Essentials (four users) or Plus(six users) plans.
Verdict:
Having the option to register for an unlimited number of users creates more flexibility for the organisation.
Having a large number of users for the accounting software provides a much-needed convenience. Employees with authorised access can directly perform tasks within the software itself, without having to seek help from their co-workers. For instance, employees filing for business expenses can simply scan receipts on their personal smartphones. They need not have to ask someone else to file it in their place.
With Xero, you can register an unlimited number of users. This is an exceptional feature!
On the other hand, Quickbooks allows you to start with a simple package for two users. You can also choose from their Essentials (four users) or Plus(six users) plans.
2. Direct Bank Feeds
With direct bank feeds, your bank is seamlessly connected with your accounting software and all bank transactional data flows into it automatically. As a result, accountants need not spend time doing manual data entry, thereby allowing them to focus on other important tasks.
Both Xero and Quickbooks can be directly connected with bank feeds.
Xero connects with 4 banks (DBS, UOB, OCBS, HSBC) while Quickbooks connects with DBS.
Verdict:
Both software have similar bank feed capabilities. However, Xero has more banking options available.
3. Mobile App
With a mobile app, most of the functions can be performed on the go. This makes routine tasks such as scanning expense receipts a whole lot easier. Business owners can also monitor their cash flow through the mobile app, allowing them access to real-time information on how their business is doing.
Both Xero and Quickbooks can be accessed through their respective mobile apps. Both apps feature similar capabilities such as preparing quotes, invoices, and scanning receipts.
Verdict: Tied
With both apps enjoying the convenience of a mobile app, this round results in a tie.
4. User Interface
A user-friendly interface makes it easy for users to navigate the software, allowing them to get the information they need or to perform tasks quickly.
Both Xero and Quickbooks are equipped with an intuitive interface which makes them extremely easy to navigate. Employees learning to use the software will be able to pick up the functions quickly.
Verdict: Tied
Both software have user-friendly interfaces that can be picked up easily.
Add-ons are digital solutions that can be integrated with your accounting software. The more add-on options that an accounting software offers, the more likely it is to integrate with the existing digital solutions which you are using.
Xero has more than 1,000 add-on options.
Quickbooks has 15 add-on options.
With over 1000 add-ons, Xero has a higher likelihood of working seamlessly with any digital solutions that you may already be using. As a result, you need not worry about changing your existing systems in order to fit your new accounting software.
6. Multiple Currencies
For businesses that engage in cross-border trading, having an accounting software that can handle multiple currencies is undoubtedly important. Businesses can tap on related functions, such as sending invoices in different currencies, instantly converting exchange rates, and getting reports in foreign currencies.
For Xero, the multiple currency function is made available through the Premium plan. As for Quickbooks, the function is accessible through the Essentials and Plus plans.
Verdict:
The multiple currency function is already available through Quickbooks’ lower priced plans. This makes it more accessible for the masses.
7. Upcoming GST Increase
The Singapore government has announced several GST changes that will take place over the next few years. Businesses will therefore have to search for an accounting software that can cater and can be ready for the upcoming changes.
Xero has already announced updates that can allow users to stay compliant through the upcoming GST F5 changes.These updates ensure GST compliance for your business through helpful functions such as keeping track of due dates and amounts owed. In addition to this, Xero is also preparing for GST F6 through F8.
Quickbooks, however, has not made any announcements regarding the GST increases yet.
Verdict:
Ensuring GST compliance is vital for any local business. With the updates that Xero has introduced, it is already prepared for the upcoming changes.
Xero has the OCR function across all its plans. However Quickbooks does not have the OCR function included in their plans. Users will have to integrate a separate OCR software in order to use that function.
Verdict:
With OCR capabilities, a business can improve its operational efficiency. This round is a win for Xero.
9. Local Office
Having a physical office in Singapore means that businesses can have access to technical support and assistance. Communications with the local Xero staff may also be more straightforward as they will be familiar with the localised business context. This is an extremely beneficial aspect.
Xero has a local office in Singapore, but Quickbooks does not.
Verdict:
Having a physical presence in the country makes it easier for users to directly request for support and assistance if needed.
10. Pricing
Let’s check out the usual prices for both the accounting solutions.
Xero’s Premium Plan is priced at S$65/month, while Quickbooks’ Plus Plan is priced at S$47.08/month.
Verdict:
Generally Quickbooks offers more comprehensive plans at a lower price as compared to Xero, thus providing more affordable options for companies that are interested in getting accounting software.
The Winner Is
Xero is victorious by being ahead in 6 out of the above discussed 10 categories. It provides higher value as a whole.
Xero allows for an unlimited number of users, along with more than 1,000 add-on options. It has also made enhancements to be compliant with the upcoming GST changes. This is a huge benefit for businesses as they need to be IRAS-compliant. Additionally, Xero has OCR capabilities that help to improve operational productivity. There is also a local office that can help to provide direct software support and customer service.
Xero provides you with more tools to thrive within Singapore’s extremely competitive business ecosystem. It is the better option for businesses that want to grow.
Get your hands on K-Reporting for FREE when you buy Xero from us! K-Reporting is a reporting cum analytics software that is worth US$468. It can be fully integrated with Xero to generate business reports that can help you to track your progress and analyse financial data.
Xero is supported under the Productivity Solutions Grant (PSG). It assists SMEs that wish to improve their productivity by adopting pre-approved IT solutions to enhance business processes.
Businesses can claim up to 70% funding for Xero through the PSG.
PSG funding has been reduced to 50% on 1 April 2023.
