Affordable professional level accounting software for small business

It's been easier to use Xero than I expected, but I had a nasty surprise at tax time when I realized the default accounts/descriptions for expenses did not correlate 1:1 to IRS categories. (I should have checked this more closely when I set up my accounts because it's a New Zealand company, and the previous product was local.) This means I will need to double-check all my transactions for 2018 and the IRS has my vastly overestimated tax payment until I can do that and file my return on an extension. I've had a much better experience importing data from financial institutions because Xero uses a well-known importing service that is trusted by the institutions. I like being able to match multiple invoices to bank deposits because I usually don't run to the bank for each check. This will be more valuable as my company grows. I should probably find an accountant to assist me with this, but I haven't found an accountant who understands both craft businesses and Xero.

Pros

Professional double entry software at a very affordable price Accommodates both cash and accrual accounting Links to financial institutions to get transactions Uses standard importer recognized by the financial institutions instead of just trying to log in remotely (and triggering fraud alerts) Can match multiple invoices to a single deposit transaction imported from bank Can keep using Xero as company grows

Cons

Pre-existing expense categories/descriptions don't map 1:1 with IRS definitions, so I'm having to go back to all my receipts to make sure expenses are entered in proper accounts because I didn't realize this when I switched More difficult to focus on specific expense categories to check transactions Have not been able to import historic data from previous app (possibly because it's not double entry) so I am still paying the subscription on that software to retain access to my data No integration with Craftybase, so I have to enter supply purchases and customer invoices there independently

Good Accounting Software, but lack decent reporting and live chat support

We switched from QBO to Xero due to several issues with QBO. However, the migration to Xero is clunky as you have to use a middleman called MoveMyBooks - Xero will pay for up to 2 years books to be moved but any more you must pay. But, things like Employees, Payroll, Expenses etc will not be migrated so you end up spending weeks manually (Yes, Manually) created Expenses yourself all over again in Xero. Very painful and cost my business thousands for false advertising a simple switch,

Pros

Easy to use, easy to input data and there's often little popup boxes to explain what elements are. It's cloud managed, so no need to download any software or store anything locally.

Cons

Support is a bit, there isn't a live chat support like there is with competitors and it lacks the aesthetics of products like Quicbooks and the same level of reports.

You are not in business if you do not use Xero

Excellent A few features I would love to have, but frankly the price and features are excellent. Makes it so easy to start a business.

Pros

Pretty, easy to use. Love the bank reconciliation and VAT and PAYE submission. Love being able to quickly generate P&L and Balance Sheets.

Cons

A few rough edges especially in allocating payments, inherited I think from originally trying to abstract away the accounting functionality. The UK Payroll feature can get complex, but frankly not sure how they can make it any easier. Miss an easy way of generating a remittance advice when paying .

Absolutely love Xero

Xero has allowed us to get a real, detailed view on the financial situation within our company from one place. With a comprehensive setup, it can provide real value from day one.

Pros

Xero has transformed our financial management and provides us with all the real time data we could imagine, and where it lacks, integrations take over. While more "accountancy" friendly than some of the more simple products, once you work with your accountants to get this right, you won't regret it. The detail, features and holistic approach to managing company finances means that we are using this every day and with pleasure.

Cons

The interface is being updated, and it is needed as it is a little old fashioned in its design. That said, it is clean and clear and otherwise we love everything about Xero.

ACCOUNTANT WARNING DO NOT PARTNER - I was 2nd partner in Canada not a smart move heres why!

Pros

Not much to say here anymore, they pretty much used to be good and totally lost faith.

Cons

As an accounting firm I would be very cautious with using Xero or recommending it to clients. Outside of Xero billing for things that were supposed to be free, which after complaining they claim they will reconcile but I had to threaten with a lawyer to get that reaction. As an accounting firm it is a very risky move to partner with the Xero software platform. As a firm Your clients will know your using Xero and as a result will likely start to follow Xero using social media. When this happen your clients will receive advertisements about other Accounting firms partnered with Xero. The problem isnt that you will loose your clients, but this makes you look really bad in front of your clients that you are recommending a software that recommends other accountants outside your firm. This actually happened to me in Canada, and the response of the Canadian Xero team was simply that they didnt intend on these promotions to be received by the clients of my firm. They didnt care, they didnt apologize, they didnt even acknowledge what they did was wrong, it was evident that they prioritized their growth over their existing partners, at least in Canada. Even The Canadian director of Xero comments where limited to telling me I understand that you need to make important decisions in the best interest of your firm. To me this was a clear message that he doesnt care. As a small business the software was historically leading, recently, many clients are having issues logging in