Online accounting software is changing

We are an accounting firm focused on assisting small businesses. We do taxes, payroll and books along with business valuations. We provide a lot of great services, and we know it is a necessity to keep up with accounting technology to simplify what we do to provide better services for our clients. So today let’s get big picture, and take a look at one of the more recent developments in accounting software. It started with Quickbooks, but it is certainly expanding. Hint: Get your head out of the clouds.

That’s right we’re talking about cloud accounting. The cloud platform, while certainly nothing new, has a lot going for it including the capacity to allow accountants to work and receive information from their clients in real time. There are a few providers out there of this kind of software, but as we mentioned, Quickbooks is probably the best known and most widely used. (In fact, our company offers Quickbooks consultations, and if you are looking to use Quickbooks in your home and/or office, call us. We recommend it first and foremost.) Nowadays, however, you can’t mention cloud accounting services without mentioning Xero. Xero is a software-as-a-service company that provides a new more user-friendly and design oriented spin on the old cloud based accounting software.

Xero actually has a lot to offer. Its services include billing and invoices, a wide range of accounting tools for the professionals, and a few other features. Of course, none of these are unique to Xero. You can use all of the same services with Quickbooks or any of the other online accounting software programs out there. The idea, of course, is that Xero is opening up theĀ  accounting software niche by improving on Quickbooks services and presenting them in a unique, user-oriented fashion. It is also investing hundreds of millions of dollars in its product to compete with Quickbooks.

The result is not only convenience with a wider array of options but also ease of use. Certainly, many proponents of Xero will agree that is what sets them apart.

Thanks for reading our update on cloud accounting. Before you jump ship from Quickbooks to Xero, be sure to do your research and consult with an accounting firm like ours. The important thing to remember is that without the guidance of a tax professional the type of software you use is really just a secondary concern.


About the author

Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. Since 2002, he has owned his own small business, Huddleston Tax CPAs. He is a graduate of Washington State University and the University of Washington School of Law.

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