Cloud Accounting Face Off Greg Lam @gregalam Who am I?

• Greg Lam, a Canadian living in Tokyo, Japan • Also known as the Small Biz Doer • Serial entrepreneur • Accountex Report writer • Teach people about cloud business apps

Agenda

• Defining basics and types of software • QuickBooks Online vs. • Zoho Books • Micro: FreshBooks*, Wave, Kashoo, Sage One • Invoicing: GoDaddy • Take Aways What are the basics requirements? • Accrual accounting • Journal entries • Chart of accounts • Verification / Reconciliation

Types of Software

• Enterprise: Intacct and Netsuite • Big Small Business?: Accounting Suite, for Financials, Sage Live • Small Business: QuickBooks Online, Xero, Zoho Books • Microbusiness: Wave, Kashoo, Sage One • Invoicing: FreshBooks* and GoDaddy

Let’s compare the top 2

• QuickBooks Online and Xero • Platforms with ecosystems • Pros and cons of both QuickBooks Online

• Consumer focused • Like Apple (walled garden) • Huge US user base (but weak globally) • Payroll and taxes

Xero

• Accountant focused • Like Android (open system) • Small US user base (but strong globally) • International support Reconciliation

QuickBooks Online Xero • Slow to start but learns • Reconciling vs. Cash over time Coding • Less control • Better out of the gates • More rows of • More control transactions • Better verification

QBO banking QBO categorization QBO auto add rule Xero banking Xero categorizing Xero cash coding QBO reconciling Xero bank statement report Xero bank statement page Xero account transactions page Who’s Faster at Banking?

• Both similar • User experience and flexibility, it’s Xero Invoicing and Billing

QuickBooks Online Xero • Better at scheduling • Contact groups repeat invoices • Approval process • Invoices have messaging • Customer Portal and attachments • Expense claims • Time tracking • Contact page • Native payments • Variety of payment add- ons

QBO recurring invoice QBO messaging QBO time activity QBO payments Xero contact groups Xero approval process Xero customer portal Xero expense claims Xero contact page Xero payment add-ons Accountant Features

QuickBooks Online Xero • Company templates • Find and Recode • Client dashboard • Report codes and • Book to tax templates • Write off invoices • Practice manager / Workpapers / XeroHQ

• Fixed assets

• Assurance Dashboard

QBO company templates QBO client dashboard QBO book to tax QBO write off invoices Xero find and recode Xero report codes and templates Xero accountant products Xero fixed assets Xero assurance dashboard User Interface / Navigation

QuickBooks Online Xero • Friendlier • Dashboard more useful • Create icon has more and customizable options • Reconciliation more • Better search organized • Drilling down easier

QBO interface Xero interface Who Wins Other Categories?

QuickBooks Online Xero • Sales tax • International Support • Payroll • File attachment • Mobile • Reliability • Automation • Data Import / Export • Customer service

Who wins these? It depends…

• Basic accounting • Reports • Inventory Verdict – QBO vs. Xero

• QBO is a better all-in-one solution in the US • Xero is better for power-users and flexible solutions, especially internationally

Zoho Books

• Can do all accounting basics • Feature set sometimes rivals and surpasses that of QBO and Xero • Good customization and automation features • Very open API and great data import / export capabilities • Many features that could be more developed • Good to use with Zoho ecosystem Zoho rivals QBO and Xero Zoho customization and automation Zoho API and data import/export Other Zoho products Microbusinesss and Invoicing

• FreshBooks • Wave • Kashoo • Sage One • Invoicing and GoDaddy

Microbusiness will do the basics

• Chart of accounts • General • Generate enough info to file taxes with • Invoicing doesn’t have those 3 things above

FreshBooks Redesign

• Moving towards bank reconciliation • Other successful platform aside from QBO and Xero • Excels at invoicing • Customer portal and online statements • Time tracking is decent • Falls short in expensing

FreshBooks redesign FreshBooks WYSYWIG invoicing FreshBooks platform FreshBooks expensing FreshBooks invoicing FreshBooks messaging FreshBooks projects Wave

• Still free but pay for premium support, payroll, merchant services • Transactions • Invoicing and Payments • Payroll • Own payment processor (well, kind of) • Still no add-ons

Wave pricing Wave support pricing Wave payments Wave transactions Wave API Kashoo

• Pricing at $19.95 • Web app is simple yet flexible enough for the basics • Missing advanced functionality • No automation, so more suitable for low volumes • Fully functional iOS apps • Small learning curve • Payroll through Paychex

Kashoo Sage One

• Pricing is back up $10 and $25 • Basics • What about Sage 50c? • Bigger in non-US territories • Sage Live? Sage One pricing Sage 50c and Sage Live Invoicing and GoDaddy

• Payments and ecommerce • $9.99 • Not geared towards accounting professionals • Limitations, but better than spreadsheets or piles of receipts

GoDaddy Take Aways

• Pricing is trending up, need to make a profit* • Payments, Payroll, and Tax are money makers • Microbusiness is growing up • Invoicing is the new microbusiness • Niche is the use case, can’t compete in general or ease of use (QBO and Xero would win) • Not a huge price difference between vendors IMHO Questions?

• Greg Lam • [email protected] • Twitter @gregalam