Which Is Better Xero or Reckon in 2023

The best time to invest in accounting software is when you have a business. A good online accounting software will help you manage a variety of things.

A few of them are expense tracking, invoicing, and even inventory management and if you are a business owner who runs a big operation, some accounting software also has a payroll feature.

As an Australian business owner, you have surely heard about Xero and reckon. Two famous software in the accounting industry.

Now, this blog will try to answer the age-old question of which accounting software is better, but first, let’s understand the need for accounting software.

Reckon compared to Xero popularity chart

Why use accounting software?

Accounting is a very important aspect of any business, for most sole traders or small business owners, it might sound easy to do it manually or with the help of Excel sheets.

A business’s accounting is more the just profit and loss. Once your small business takes off, accounting also becomes more complex maintaining invoices and inventory can be very tedious.

This is the stage where you will feel the need for a helping hand, but not all sole traders or small business owners can’t afford to have accountants. For such business owners accounting software providers like QuickBooks Online, Xero, Reckon, or even lesser-known software providers like ProfitBooks is a blessing.

Once you outsource your accounting tasks using software you can focus on the more important things which are helping your business grow.

In this blog, we will take a deep dive and look at two of the leading Accounting software providers, Xero and Reckon.

Use XERO with zero doubt

Xero is a comparatively new accounting Platform. It was launched in 2006 in New Zealand and soon after became popular in Australia for its unique and user-friendly features. which we will be talking about a little further in the blog.

Due to its unique features, XERO has around 1.12 million users in Australia alone, and the number along with XERO’s popularity is growing by the day. let’s see some pros and cons of the software.

Xero home screen

Pros

1) Beautiful and Intuitive Interface:

We all hate when the software you are working with is complicated and boring, but with XERO’s user-friendly and fancy interface you will not only be able to work with the software with ease but the software will look good while you do.

This is also the reason why, we here at profitbooks are so passionate about making Our unlimited invoices feature not just beautiful, but also user-friendly.

2) Cloud-based Platform:

In 2023, if it’s not online does it even exist? In today’s world everything is online and cloud-based, and so should your accounting software.

Because of cloud integration, you can conduct business anywhere in the world as well as you can integrate other business tools into your software as well.

3) Bank Reconciliation Made Easy:

We all love when some aspects of our work are easy and simple, and Xero understands that.

Hence they automatically categorize all your transactions, which makes it easy to reconcile bank transactions of all your business-related money exchanges.

4) Automated Invoicing and Receivable Management:

The most professional way to make sure that you are getting proper payment for your work is by creating an invoice for all the account receivables your clients and customers need to be aware of.

Sometimes it might be very tedious work to keep reminding them about these account receivables.

Xero makes managing these account receivables easy with auto-reminders and features which let you manage them.

5) Multi-Currency Support:

Internet has made it easy to work around the world, with different customers and clients. A lot of software is not always capable of handling these business transitions in multiple currencies.

With XERO you will not face such a problem as it offers muti-currency invoices as well as tracking. This along with its updated exchange rates will help you with easy worldwide transactions.

6) Extensive Integrations:

This the by far the best feature the software has to provide. The software providers understand that a business owner’s business-related needs are not linear or straightforward.

Hence, the software provides dynamic third-party interactions to make a business owner’s life easy.

7) Collaborative Environment:

The most important plus the software has is its efficient collaboration. with this software, you will be able to give access to your employees, or even a guest accountant for review.

Not just making your work easy, but also transparent to ensure trust and confidence.

Xero pricing plan

 Cons

1) Cost:

The cost of the software is high. A lot of sole traders or small business owners may find it difficult to constantly review such a steep cost for accounting software.

2) Learning Curve:

The software is very user-friendly and has an interactive interface but there is still a learning curve to get used to it.
especially if you are migrating from other accounting software to this one.

3) Limited Customization:

Now, this might sound ironic, but software that is known for this customization has limited customization. This problem is just for the invoices. With the software, you might have a problem making or creating dynamic invoices.

4) Support and Documentation:

While the software provides support resources and a knowledge base, some users have reported challenges in finding specific information or receiving timely support when encountering issues. Depending on your reliance on customer support, this aspect may impact your experience.

5) Add-On Costs:

While the software integrates with various third-party apps, it’s important to note that some of these integrations may come at an additional cost. Depending on the specific functionality you require, there might be extra expenses associated with integrating XERO with certain tools or services.

6) Industry-Specific Limitations:

Software may have certain limitations for businesses operating in specific industries or with specialized requirements. It’s crucial to ensure that the software can adequately support your industry-specific needs before committing to the platform.

Reckon a force to reckon with.

As a business owner in Australia, there is a very thin chance that you have not heard about Reckon. Launched in 1987 its the oldest accounting solution in the country.
last year they reported 1 million users. For all Australian business owners, this software is the go-to choice, and rightfully so.
With accounting features like payroll, bookkeeping, invoicing, etc. this is a well-diverse accounting solution.
let’s look into the pros and cons of this software.

Reckon pricing plan.

Cons

1) User Interface and Learning Curve:

Some users have found The software user interface less intuitive than other accounting software options. Navigating through the software and finding specific features may require a learning curve, especially for users who are less experienced with accounting software.

2) Limited Automation:

The software’s automation capabilities may not be as extensive as some other accounting software options. Users may find certain processes, such as bank reconciliation or invoicing, to be more manual and time-consuming, requiring additional effort and potentially impacting overall efficiency.

3) Scalability:

Some users have reported limitations in terms of scalability with the software. As businesses grow and their financial needs evolve, they may find that the software’s features may not scale as seamlessly or comprehensively as desired, necessitating a potential transition to a more scalable solution.

4) Customer Support:

While the software provides customer support services, there have been occasional reports of longer response times or difficulties in accessing timely assistance. Depending on a business’s reliance on customer support, this aspect may impact the overall experience and resolution of any issues encountered.

5) Limited Integrations:

Although software offers integration options with select third-party applications, the range of available integrations may be more limited compared to other accounting software platforms. Businesses with specific integration requirements may find that Reckon’s options do not fully align with their needs.

Profitbooks homescreen

FAQs

Is the accounting software compliant with Australian tax regulations and reporting requirements?

Australian businesses must comply with specific tax regulations and reporting obligations set by the Australian Taxation Office (ATO). Business owners frequently inquire whether the accounting software they are considering meets these requirements, such as Goods and Services Tax (GST) reporting, Business Activity Statements (BAS), and Single Touch Payroll (STP) for payroll management.

Can the accounting software handle multiple currencies and international transactions?

It’s essential to ensure that the accounting software can handle these requirements for businesses involved in international trade or dealing with multiple currencies. Business owners often ask if the software supports foreign currency transactions, exchange rate conversions, and international taxation rules.

Does the accounting software integrate with other business applications and systems?

Many businesses use multiple software solutions to manage different aspects of their operations. Integration with other applications, such as point-of-sale systems, customer relationship management (CRM) software, or e-commerce platforms, is crucial for streamlining workflows and ensuring data consistency. Business owners often inquire about the compatibility and integration capabilities of accounting software.

Is the accounting software scalable to accommodate business growth?

Business owners want accounting software that can scale alongside their company’s growth. They often ask whether the software can handle an increasing number of transactions, support additional users, or adapt to changing business needs without significant disruptions or data migration challenges.

What level of customer support and training is provided?

Customer support and training resources are essential considerations when selecting accounting software. Business owners frequently ask about the availability and responsiveness of customer support channels, such as phone, email, or live chat. They also inquire about training materials, documentation, and online resources to ensure they can effectively use and troubleshoot the software.