There are a great number of viable options when it comes to payroll software. Choosing the right payroll software can be tricky considering the different needs of each company. For instance, a small family-sized business is different from a business with hundreds of employees.
There are many aspects that can influence your decision when it comes to choosing a payroll software. Among the things that you want to investigate includes the frequency of the payroll. Are you going to pay your employees and freelancers by the hour or are you going to pay them bi-weekly? Next, you also want to know how many users are allowed each software? And, you want to know if the software has what you need. Is the software easy to use?
The good news is that there are also a good number of options to choose from. Among the top options include Xero, MYOB and Quick Books.
On the surface, cloud-based payroll software offers the same thing for users. There are differences that you will have to know.
Cost
First, let’s take a closer look at the monthly cost of these options. The lowest Xero subscription costs $9 per month while Quick Books is at $20 a month. If you are a business that is on a tight budget, then the option is obvious. You will most likely stick to the cheaper payroll software which is Xero.
As for MYOB, you will be paying $29 per month to enjoy its unlimited transactions, bank feeds, as well as its unlimited users.
But let’s admit that it isn’t only a case of which is cheaper. There are also other factors that you will need to consider. Xero Starter Edition that costs $25 can offer bank feeds, unlimited users, and 20 bank transactions a month, something that can compete against MYOB.
You can also go for the mid-tier Xero at $30 if you feel that you need more features on your payroll software. Xero can go all the way up to $60 and could even add up multi-currencies. Now, the most expensive option for Quick Books is also at $60 which adds inventory tracking that is available for up to five users.
Invoicing
Though Xero is a lot cheaper than Quick Books and MYOB, in terms of invoicing, XERO performs the same services as Quick Books. For instance, it can customise invoices. Also, it automatically adds late fees and sends payment reminders. Though it may look the same, there are some minor differences between Xero and Quick Books.
For Xero, you will have to upload a template. On the other hand, Quick Books can allow you to customise the invoice within the software itself. Here, you can also update the logo, colour, as well as the layout.
As for MYOB, if there is anything that is good with this software, it has a drag and drop option plus its unlimited invoices. Here, you can also easily change the details such as name, address, etc. In contrast to the lower-end Xero, you can have only up to five sales invoices and five transactions per month.
Paying Bills
Xero is known for having a simple interface when it comes to paying bills. Just select “purchases” under the “accounting” header. From here, select “new” and click on “bill”. For Quick Books, it takes a bit more steps.
It is also possible to convert the purchase orders into bills for Quick Books and Xero, something that can help save users some time. And for both Xero and Quick Books, it is easy to automate expenses for Xero and Quick Books.
Now, if you are dealing with a recurring bill, you easily set it up in Xero as well as MYOB. For Xero, you can simply put “repeating bill” and the software will take care of the rest and automate the bills depending on the recurrence option that you choose.
As for MYOB, you will just have to set the transaction name, frequency, and schedule the transaction when it is going to start. You can even choose to continue the transaction until the set date, or you can set the number of times this transaction is going to recur.
As for Quick Books, recurring bills can be quite a hassle. You will have to do it via banking register. And if you are somewhat new to the software, you can’t automate this process unlike how you do it with Xero.
Reports
For every business, reports are always important simply because you want to know how your business is performing. You want to know the profits and losses. And, you want to make sure that can customise financial statements.
Xero is ahead of both Quick Books when it comes to having an equity statement. It means that if you are running a business with several investors, you can easily display the investments plus the equity draws.
But if there is an area wherein Quick Books is better than Xero, that would have to be in providing users with their accounts receivable. And, Quick Books offer in-depth profit-loss report by customer. You will have a comparison estimate for a customer in contrast to the sales to that customer and collections reports.
But one thing that makes Xero stand out in terms of reporting is that it includes human resource functions. It means that time off balances and requests are included within this software. It means that Xero is the preferred software by simpler businesses in terms of reporting. However, if you have investors, at play, then you might need Quick Books’ more in-depth approach.
Now, Xero stands out against MYOB when it comes to its ability to run several reports all at once. It means that you can save a lot of time when it comes to Xero’s reporting.
Verdict
Choosing among Xero, MYOB and Quick Books, we’d choose Xero for several reasons. One, it is generally easier to use. Next, Xero fits the needs of small and medium-sized businesses. And, you can start enjoying the perks of Xero without spending so much money. Though it offers a limited number of things for its entry-level subscription, Xero might have what a small business need.
Xero can also be integrated with third parties that can help businesses with their complex inventory. This is something that isn’t available with MYOB. And even in the app version of Xero, you get a better user interface than MYOB’s Android and iPhone app.
