When you look at the above picture, this is not what Accountants want to see. With Cloud Based Accounting Software, all these documents will be stored in the cloud and you will have a neat and tidy office with all documentation available at the click of a button.
Covid-19 and Cloud Based Accounting Software
So after Covid-19, most of us now accept that Cloud Based accounting software is the way to go. It now looks like the second wave has come and gone all over the world and the third wave is getting underway certain certain parts of Europe while in South Africa two provinces infection rate is over 1, which is a sign of increasing infections and maybe a precursor to wave three. Even if there is a third or fourth wave of Covid-19 before we all get vaccinated, your accounting work can be up to date if you have the right systems in place.
What is the best Cloud Based accounting software?
Then the question arises as to what is the best Cloud based Accounting Software. When you’re searching for accounting software for your small business finances, narrowing your search down to a single choice can be tricky.
That’s why many small business narrow their accounting software down to two of their very best options—Xero vs. Sage (See https://www.fundera.com/business-accounting/xero-vs-sage) —and then have a hard time choosing between the two.
Basically, Xero and Sage are two of the most small business friendly cloud based accounting software out there. With multiple user-friendly version that will allow your accounting software to grow with your business, both Xero and Sage are hospitable to the future of your ever-growing business. Then both can integrate AI software for uploading all your documents, which saves you time and money.
Again on the money side, these two options are both remarkably affordable, making them ideal for small businesses who are working with more restrictive budgets. Both come in at similar pricing, but as Xero is priced in US$, you have to take the exchange rate into account, so it could end up costing more.
On the most basic of plans, Sage seems to have fewer limitations than Xero. You also need to take into account what your Accountant/Auditor uses, unless you are going to do all the work yourself. If you ask your Accountant or Auditor, they are normally tied into a software supplier and will want you on what they use.
I look at what is best suited for the client. For example Sage and Xero individually do not have the ability to scan in line items of stock, but Xero with its collaboration with many software developers does have third party software that could scan an invoice and take stock items into stock on Xero. This saves time and also increases accuracy as you no longer have manual inputting of stock.
My point of view is if the client needs a lot of apps for financial analysis or planning or inventory control, then Xero has more to offer. Also with Xero, depending on the plan you are on you have less limitations on uploading documents via their built in system, Hubdoc. Both Sage and Xero can link into DEXT for data uploads, but you pay extra for DEXT while Hubdoc does the same work.
Who wins in this Xero vs. Sage cloud based accounting showdown?
Well, because every small business’s accounting software needs will differ, there’s no categorical winner in Xero vs. Sage. The best way to choose your winner in Xero vs. Sage is to decide which features matter most to you, and to choose your accounting software based on which one does those features best for you. From my point of view, Xero may edge Sage out slightly, but you have to make up your own mind.
