Considering Switching from Xero to QuickBooks Online: Will I Regret It?
As the owner of an IT services business, I handle my own Accounting without a bookkeeper. Currently, I’ve set up extensive integrations between our project management tools, Xero, and Payroll, which we manage through Employment Hero.
While I have substantial experience in deploying and integrating ERP systems, I’m starting to get frustrated with some limitations in Xero:
Where Xero Falls Short
- Lack of Project Codes: The tracking codes are somewhat helpful, but I find them quite limited without project codes at the transaction level.
- No Project Management: The absence of dedicated project tools is a significant drawback.
- Missing Custom Fields: I can’t customize fields to suit my needs.
- Journal Visibility: There’s no straightforward way to view what journal entry is being created when processing a transaction.
- Payment Verification: Verifying customer payments against invoices before approving bills is cumbersome. There’s no simple method to link or flag invoices to corresponding bills.
- overpayment Handling: It’s challenging to manage overpayments. Xero doesn’t allow placing payment on account for future invoices.
- Lack of Sales Orders and Goods Receipts: These features are sorely missed in Xero.
What Works in Xero
- Banking: Despite overpayment issues, banking is generally straightforward.
- Creating Quotes and Invoices: These processes are smooth.
- Invoice Appearance: The invoices look professional and appealing.
Temptation of QuickBooks Online
QuickBooks Online Advanced appears attractive with its project Accounting features, making it a strong contender for our needs. The pricing seems reasonable, but there are aspects that give me pause:
- Interface Issues: Some screens don’t resize properly.
- Banking Experience: Xero offers a slightly smoother banking experience.
- Invoice Design: The visual appeal of QBO invoices falls short of Xero’s standard.
Moreover, I’m apprehensive about QuickBooks Online’s reliability and have come across numerous reports concerning poor customer support.
Is Transitioning to QuickBooks Online the Right Choice for Me?
I’m contemplating this switch but remain wary of potential regrets. Is it worth making the move, or should I stick with what I know despite its shortcomings?
One response
Deciding whether to switch from Xero to QuickBooks Online (QBO) is indeed a significant decision, especially when you rely heavily on integrations and have built specific workflows around your current Accounting Software. Let’s break down some of the key considerations to help you make an informed choice:
Pros and Cons of QuickBooks Online
Pros
Project Accounting: QBO offers more robust project Accounting features, which could significantly benefit your IT services business. With features like project tracking, time tracking, and detailed profitability insights, you can manage projects more effectively.
Custom Fields: Unlike Xero, QBO allows for the creation of custom fields. This can enhance your ability to track and manage specific data points relevant to your business operations.
Reporting: QuickBooks generally offers strong reporting capabilities, which could help in obtaining insights into business performance and financial health.
Integrations: QBO has a broad ecosystem of integrations, which might intersect well with your existing project management systems, although this depends on the specific tools you use.
Workflow Automation: Advanced versions of QBO provide workflow automation features, which could streamline some of your Accounting tasks and reduce manual effort.
Cons
User Interface and Usability: Some users find that QBO lacks the sleekness and intuitive design that Xero offers. Issues with screen resizing and interface glitches can be frustrating.
Support: Reports of poor customer support are a concern. If you encounter issues, this might be a significant disadvantage without a dedicated bookkeeper.
Invoice Design: While functionality may be robust, the aesthetic appeal of QBO invoices may not match the standards you appreciate in Xero.
Banking Features: You mentioned that Xero handles banking features well except for overpayments. While QBO provides comprehensive banking functionalities, your satisfaction may vary.
Considerations Before Making the Switch
Importance of Project Features: Given your emphasis on the lack of project-related features in Xero, weigh how crucial these are against potential compromises in other areas with QBO.
Integration Transition: Past integrations built with Xero need careful evaluation to identify how they would transition to QBO. This might involve re-developing some connections, which could incur additional costs and time.
Trial and Testing: Utilize any trial periods of QBO to thoroughly test out features, especially focusing