Xero
Popular but not amendable
We have listed Xero, not because we recommend it, but because of the hype on this software.. We will work with it – but do not recommend it as highly as Clearbooks, Freeagent or Wave (which is free).
Xero has been written with open architecture. It is linked to many other software packages including Yodlee, payment providers, Mobile phone technology, links from sales ordering systems, CRMs and other softwares. I like their open and pioneering attitude. The bank liaison is key and is based on Yodlee account aggregator technology. Xero therefore downloads transactions from your bank account automatically (ie without a need for the import of a file exported from your bank statement).
The bank can be seen with a running total which many online packages cannot manage. This makes reconciliation to a statement easier.
The Making Tax Digital (MTD) for VAT process is concerning. We have already had to make a £15,000 VAT misdeclaration for one of our clients due to incorrect coding embedded in the software.
The software is so close to what I want to my clients and the wider community.
But the problems remain those listed in the review. While the expenses can be amended, Xero creates sales that cannot be amended. The report system does not link elegantly to the chart of accounts. There is no straightforward coding – most reports just come off alphabetically.
It is basically too slow and clunky. For an online package it should be a lot more user-friendly.
One of our MYOB User Group members recently moved to Xero. This is what they say about it. ‘ I went with Xero and it is brilliant. The hubdoc facility is life changing.
Unfortunately I also swapped another business to Xero because of my experience with XYZ Ltd only to find that the projects facility simply doesn’t work – you cannot get any meaningful reports from it which was essential for the other business. It has caused me a complete nightmare manually checking thousands of individual entries on spreadsheets.
So I love it and hate it at the same time!’