Should SMBs Go Beyond QuickBooks for Their Accounting?

Accounting remains an inseparable part of the business and, at the same time, an increasing number of businesses relying on software for various operations. That makes accounting software a necessity for the businesses.

When it comes to choosing accounting software, QuickBooks comes as the most popular choice among SMBs. Laced with a number of features in a simplistic interface; QuickBooks has been ruling the accounting software market for years.

In July 2019, Intuit (the founding company of QuickBooks application) reached over 52 million clients as reported in the FY’19 report, out of which, QuickBooks Online accounted for over 4.8 million subscribers. Hence, it showed 25% growth rate in US Market and 58% growth internationally.

On the other hand, QuickBooks’ closest competitor- Xero, reached 1.82 million subscribers with overall growth rate of 31%.

The favor for QuickBooks is quite evident with these figures. Is QuickBooks really worth it or is just riding on its popularity? Let’s explore:

1. Features

Features that a small business may require with the accounting software are endless, depending on what it serves. Since this article compares QuickBooks with other software, we will skip directly to the one which is closest to the features count. So, Xero comes to this battle.

Other accounting software, such as- Kashoo and FreshBooks, are way too simplistic to give a scare to QuickBooks. Competing with Xero, QuickBooks has an upper hand in terms of better templates and built-in payroll, payment, or tax processing options.

If your business lies in between the small and medium-size businesses, then QuickBooks is more likely to be your choice. If your business comes in the microscale businesses, then Xero can be a better choice. Further down, Kashoo and FreshBooks can come into play.

2. Price

Pricing is one of the most important considerations when it comes to choosing accounting software. Unfortunately, the price plans of various accounting software vary on different parameters, so it is tough to compare them on the same scale.

Let us discuss them on their smallest packages. QuickBooks Pro arrives at $12 per month to offer income and expenses tracking, invoice and estimate creation, bank accounts sync, bill payments, and instant reports.

For inventory tracking and 1099-S form prints, higher price plan needs to be chosen that can go upto $75 per month depending upon the features it offers. Xero offers a $4.5 per-month plan for 5 invoices and bills each, along with 20 lines reconciling of items. Kashoo has a $19.95 per-month plan, which can be reduced to $16.65 per month average for an annual payment. Then, FreshBooks offers $6 per month plan for single user and can go upto $15 for 500 users.

Price variation does not look immense on the core. So, all this has to sum down to the requirements of the accountants. One cannot simply declare one better than the others in this case.

3. Reliability

As mentioned above, QuickBooks enjoys a greater customer base than any other accounting software for small and mid-scale businesses. It has been in the business for more than 2 decades and still looking very strong. That adds a lot to its reliability.

With the various cloud hosting plans on offer, its future roadmaps appears smooth as well. Its competitors lag on the customer base, but they have also earned many years of experience in the market. Most of them have their cloud plan in action but ups and downs with the market performance with some of them are a concern.

Additionally, looking at the customer reviews on FinancesOnline, both Xero and QuickBooks Enterprise have been rated 9.5 (out of 10).

But there is another side of the story. Being massively popular, QuickBooks is often criticized for delays with support services. Lesser fame and customer base of its competitors act in their favor as they are able to deliver faster support.

Conclusion

There are some ifs and buts with almost all accounting software, depending on which various businesses have their individualistic take. For greater services and more features, QuickBooks looks the most dependable option but for the accountants, it is necessary to understand the business needs and then pick the best one.

If you have any questions or want to buy QuickBooks license, chat with our Solutions Consultant today.

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