Tax & Accounting News

Will Xero Accounting Make a Big Splash in the US Market?

by
Lee Reams II
on
5/29/2017
Will Xero Accounting Make a Big Splash in the US Market?

When you think of small business accounting software, you normally think of Intuit QuickBooks. As business owners start transitioning to the cloud, a new name is making a big push in the US. Xero is a New Zealand-based cloud accounting platform with 1,700 employees and 20 offices across the globe. Xero claims over 1 million subscribers and a growing client base. Contrast this to Intuit's QuickBooks Online product with over 4.8 million users and you can say the newcomer is making a name for themselves.

What is great about cloud-based accounting systems is that they are ever evolving. Better yet, they update on their own, so no tech's or software updates to worry about. There are a few comprehensive studies that have compared the two applications side-by-side, they include a 2016 review by AccountEx and a feature list by GetApp that makes choosing the right software for your business a cinch. It is always wise to start with your accountant before you make your software choice. Accountants have much more experience on the pros and cons of each system and what might be best for your particular business.

Forecasts predict that cloud software will dominate the market by 2020. Xero CEO Rod Drury shared his thoughts in a recent interview with Business Insider. Rod stated that "the vision (of Xero) was to build a multi-billion dollar financial service company. We think SMBs are the biggest monetization opportunity on the web." Drury noted that entrepreneurs "hated doing their books," hence the founding of Xero. Drury added that "SMBs need to spend money on good accounting software."

Building better accounting software has helped accountants move from more number crunchers to virtual CFOs. They are now better able to guide small business owners through the start-up and the growth process. Time will tell, but the belief is businesses that work with accountants will see more successful outcomes.

Choosing an accounting package is one thing, but knowing how to use it is an entirely different issue. For those that need additional guidance and help with the chart of accounts set up, budgeting and bank reconciliation, a professional CPA or accountant is a must.

Cloud-based accounting practices continue to grow, adding 5 times more clients than traditional practices. Partnering with cloud accountants makes it easier for Entrepreneurs to complete their books and focus more on financial KPIs.

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Lee Reams II

Lee Reams II

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I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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