What is Xero & Quickbooks?
Xero is an accounting software company. Quickbooks is an American accounting software owned by a large financial software company Intuit. Both are popular accounting software options for small businesses.
There are other options but most small businesses in Singapore use either Quickbooks or Xero. Therefore our accountants are trained to use both accounting softwares and are able to take over and manage the books of any new client already on Xero or Quickbooks.
Both accounting softwares have many useful features for accountants such as:
- A general ledger to keep track of all financial transactions
- Integration and bank feeds with banks in Singapore such as DBS and OCBC
- Generate financial statements
- Chart of accounts
Does the accounting software that I use matter?
There are many good accounting softwares out there – Wave, Adolet, Xero and Quickbooks to name a few.
The key difference is the accounting software’s integration with your banks. For example, many foreign accounting softwares don’t have any integrations with local Singaporean banks like DBS and OCBC.
This makes it incredibly difficult for you or your accountant to do reconciliation or add transactions. Your accountant may even be forced to do manual data entry for hundreds of transactions if uploading a bank statement isn’t an option.
Therefore you should be very careful when selecting an accounting software to use and consult your accountant beforehand.
Frequently Asked questions
What is the difference between Xero and Quickbooks?
Both are small business accounting softwares and most accountants in Singapore are familiar with both. But there are some differences.
One key difference is that Xero has many integrations with Singaporean local banks. Xero calls them bank feeds. Basically, all transactions on your OCBC or DBS corporate account will be automatically added to your Xero software. There’s no need for any manual data entry or CSV file upload. This is extremely useful for accountants and accounting firms, especially those with many clients to manage. Spending less time on data entry means more time on reviewing all your company finances and doing reconciliation.
Another difference is their integration with other accounting softwares. Since Quickbooks is owned by Intuit, they have great integrations with all Intuit products. However, they don’t offer a lot of integrations with external softwares. On the other hand, Xero offers great APIs and has a lot of great software integrations. If you’re using a CRM or enterprise software, chances are there’s a Xero integration for you.
How much do accounting services cost?
Accounting services vary from industry to industry and depends largely on the size of the business. This is because the bigger the business, the more transactions there are to manage and the large the company finances to oversee.
But in general, accounting services in Singapore can cost anywhere from a few hundred to a few thousand dollars for small to medium sized businesses. This cost increases with other services such as accounts receivable collecting and payroll services. For an accounting services quote, contact us now!
Is a freelance accountant better than an accounting firm?
Should I engage an accounting firm or a freelance accountant? Wouldn’t a freelance accountant be cheaper? These are a few of the most common questions in a business owner’s mind when looking for accounting services. There is no definitive answer but generally, freelance accountants tend to make more mistakes while charging a lower quote for their accounting services.
This is because accounting firms need to pay other costs such as bookkeepers and rent. The extra support eats into their bottomline and accounting firms charge more as a result. It’s difficult to say whether you should engage an accounting firm or freelance accountant. Saving a few hundred a month could mean nothing if the freelancer made a mistake in filing your annual return, which may result in you receiving a huge fine.
In addition, you can’t apply for an EDG Grant or PSG Grant for accounting through a freelance accountant. You can only apply for the grant if the accounting was done by a registered business. For more details about the PSG Grant for accounting, contact us today!