Xero targets small to mid-sized businesses with its design-centric, online accounting software designed to take on QuickBook’s long grip on the marketplace. Founded in 2006, this New Zealand-based company now has 700,000 users in over 180 countries and has become the primary accounting solution for over 16,000 firms.
It currently seems like the strongest challenge to QuickBooks, particularly thanks to its virtually seamless support of unlimited users, multiple currencies, hundreds of third-party app integrations, and easy-to-access tutorials anad customer service. Perhaps the biggest flaws with Xero are that its payroll function isn’t available in all 50 states yet, the reports can be difficult to customize, and setting up the tool to generate in-depth reports can require a heavy time investment up front (although ultimately, this makes managing your transactions a snap).
Xero’s offerings include a mobile app, invoicing, an easy-to-read cash-flow interface, ecommerce integration, payroll, bank reconciliation, data conversion from Quickbooks, financial and tax reporting, and multi-currency support. Most notably, it offers:
- Integration with over 400 business apps – including payment apps, financial institutions, and inventory trackers – for a broad range of services
- Cash flow reporting to manage bills and expenses so that your cash flow is always up to date.
- Pay roll processing (albeit not in every state), which is one of the most difficult parts of small business accounting.
- Security software to protect your financial data.
- Invoice tracking and communication to make it easy to follow up with clients.
- Multi-currency invoicing, which is key for doing international business.
- Tax reporting at both the state and federal level
- A design-centric interface, customer support, and tutorials that makes the site easy to use once you’re past the initial learning curve.