My Week: Xero to QuickBooks

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Hello folks. It was a busy week. Well, busy for a part-timer.  I am enjoying putting in fewer hours. For this to work, it is vital to have competent employees who do the day to day work. Thankfully I have the right people.

I may become a permanent part-timer. Time for self or as wellbeing gurus would put it "me time".

The situation demands that I stay a part-timer for the moment. I am surprised, more recently, it is working out well. Indeed, every cloud does have a silver lining.

Hopefully, I will be able to retain my current income with fewer hours of practice time. It is possible.

QuickBooks

Every time I get my monthly Xero invoices, it pushes the buttons in me to look for cost-effective options. We do not have any issues with Xero's functionality. We like working with it. Xero increasing prices are a concern.

Unlike some, we do not see Xero as be all and end all. We are NOT unquestioning Xero fans. Well done you Xero. Earlier, the hassle factor did not motivate me to consider alternatives seriously. It is now time.

Much of a Muchness

I think it is best to explore the QB option. I have made the decision to offer QB to new clients. The decision is purely based on costs. The functionality of QB and Xero is similar. The key advantage QB has, in addition to its pricing, is my clients, employees and I can call them.

Further in terms of direct marketing support, I am not getting any from Xero. Having talked to QB, they appeared to be open to this. QB is now what Xero used to be a few years back. Treat small practices like me as having value. I understand, once QB gets their market share, they may become the same as Xero or maybe worse. Till then, I will enjoy the lower prices.

Action

I will start by getting a QB certification.  This way, I will have a good idea of its functionality work and compare it to Xero. Further, it will enable me to train clients.

All new clients will be put on QB. I will review existing clients on Xero and review whether some of them can be moved to QB. These will be smaller clients for example freelancers. I will need to think of an incentive for them to agree to move.

Let's see how it goes in the coming weeks.

Replies (10)

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By mumpin
22nd Jun 2019 10:32

Hi FT,
I'll be interested to see how you get on. I've got about 15 clients on QB. I'm not happy with it and have stopped pushing it. I think that the trouble with QB is that it isnt structered enough (specifically no nominal ledger codes). It allows the client to make a total Horlicks of their bookkeeping whilst thinking that they have done a really good job and recced the bank etc.
I started numbering NL codes before inviting a new client to join but then the bank account(s), debtors and creditors are only created once the client starts to input data.
QB users just need a crazy amount of hand-holding. I will be interested to see how you get on.

Thanks (2)
Replying to mumpin:
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By FirstTab
22nd Jun 2019 16:11

Hello mumpin

Thanks for very helpful feedback. It has made me question my decision. A major plus of sharing my views and thoughts.

I will make an assessment after QB certification. It will give me a good idea whether to promote it to clients. Sure, I will report back.

Thanks (0)
Replying to mumpin:
By Charlie Carne
28th Jun 2019 12:16

mumpin wrote:

Hi FT,
I think that the trouble with QB is that it isnt structered enough (specifically no nominal ledger codes).
.....I started numbering NL codes before inviting a new client to join but then the bank account(s), debtors and creditors are only created once the client starts to input data.

QBO does have an option to turn on NL codes (as you go on to say) so I'm not sure what you mean. Sure, as new accounts are auto-generated by the software they will initially lack a code number, but you can add those in very quickly. In fact, as part of setting up a new client on QBO, I create a dummy sales and purchase invoice so that the debtor and creditor control accounts are set up before I hand the file to the client.

FirstTab - I think that you'll find QBO a great tool. Whilst Xero is excellent, I find QBO easier to use and much more flexible; in particular, its ad hoc, fully customisable reporting is leagues ahead of Xero. When you do the QBO certification, make sure you go on their free classroom training course. It's excellent and you'll have the opportunity to ask lots of questions.

Thanks (3)
By Glenn Martin
24th Jun 2019 12:30

FT how do you price/issue your bills. Do you not just include an amount on the invoice of £25 (or whatever) to cover the software cost. That way it is transparent and the clients can check on the software website what it costs so can have not argument. If you do all you have to is increase then it covers any software increases and I have had no comeback since I had to increase that element of my charges.

If you just charge 1 figure of say £100 per month then I guess its more of an issue.

Also have you considered the time cost of migration and retraining of clients against the difference in subscription prices as if you are driving the change the clients will expect that as your costs which may well outweigh the few quid on software costs.

I also find clients stuff things up more in QBO and the lack of "find and recode" means it takes longer to put right.

Also have you considered that QBO are actively pushing their own bookkeeping service in the US.

Thanks (1)
Replying to Glennzy:
By Charlie Carne
28th Jun 2019 12:19

Glennzy wrote:

I also find clients stuff things up more in QBO and the lack of "find and recode" means it takes longer to put right.


QBO has a facility called "Reclassify Transactions" which accountants can access from the briefcase icon if you are logged in via QBOA (this is not available to clients logging in directly to a QBO file). It's simple to use and hugely powerful. In fact, I think they offered this before Xero offered a comparable facility.

I am frequently amazed by Xero users who tell me that they think that QBO can't do things as well as Xero. I can, of course, understand that a user may prefer one system over another, but I suspect that those who dismiss QBO have either not learnt how to use it fully or remember how it was a few years ago when it did, indeed, lag behind Xero. I'd happily take up a challenge against a Xero evangelist to see if Xero really is better than QBO. I don't claim that QBO is superior to Xero (they are both truly excellent products) but the negative opinion of QBO from Xero users really feels like Apple fanbois [sic] lambasting Windows. Neither is clearly better than the other; it's down to preference.

Thanks (4)
Replying to charliecarne:
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By MissAccounting
28th Jun 2019 13:07

charliecarne wrote:

I am frequently amazed by Xero users who tell me that they think that QBO can't do things as well as Xero

Its a cult thats why Charlie!

Thanks (4)
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By SE_Confused
28th Jun 2019 19:14

we have some clients in Xero (they chose it) and the bulk are in QB we as we have found it is quicker to deal with the bank records in QB vs Xero.
I like the support and the fact that they asked for our feedback on CIS when developing it.
I would not recommend Xero to any new client.

Thanks (1)
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By North East Accountant
01st Jul 2019 08:22

Don't forget Xero are soon introducing Xero Tax (final accounts and tax) free for all where there is a xero subscription.

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Replying to North East Accountant:
By Red Leader
01st Jul 2019 12:09

Will it be as good as Xero Payroll ...?

Thanks (1)
Replying to Red Leader:
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By MissAccounting
01st Jul 2019 13:44

Red Leader wrote:

Will it be as good as Xero Payroll ...?

Lets hope so!

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