Xero Partner Status

Recently we have fielded a lot of questions regarding online packages such as Xero.

Traditionally, accounting packages have been sold as a desktop application that were installed onto your computer and accessed the data stored on that computer or a local server.  Recently, there has been a move to online software where the data and program is hosted by the service provider and you access your data through your web browser (Internet Explorer, Firefox, etc).  Rather than pay a large sum upfront for the software, the online providers work on a model known as ‘Software as a Service’ where monthly or annual charges are compulsory.

Because the data is hosted by an external party, you are able to access it 24/7 from almost any computer in the world or from Smart Phones such as the IPhone.   An additional benefit is that most online providers include automated bank feeds in their products – at the start of each day, when you log into the software, your bank transactions for the previous day have automatically been loaded into the software ready for you to code and reconcile.

Presently there are two main providers of online software in New Zealand:

Xero – www.xero.com

Xero are a New Zealand founded company specialising in online software.  Launched in 2006, Xero have developed a cashbook system with new features added every four-eight weeks.  Currently they have three products:

• Xero Small ($29 per month) – a small cashbook for tiny businesses with up to 20 bank statement lines and 5 invoices per month
• Xero Medium ($49 per month) – designed for small and medium business with debtors and creditors.  Offers unlimited invoicing and bank statement lines per month
• Xero Large ($64 per month) – adds multi-currency into the medium product

MYOB – www.myob.co.nz

MYOB has been New Zealand’s largest provider of software for small business for the last 15 years and has recently announced the introduction of their online solution, MYOB LiveAccounts.    Offering similar features to the Xero product, LiveAccounts offers automated bank feeds but does not offer multi-currency.  Currently there is only one version of the software which is $35 per month.

Benefits of online Software:

• The software and data file do not take up room on your computer’s hard drive.
• No need to worry about back-ups
• Automated Bank Feeds
• Easy, simultaneous access for the accountant or support people
• Available on almost any computer and on most smart phones
• Software enhancements are included in the price, and automatically installed for you
• Strong security in place for data protection

Disadvantages:

• Very limited customisation of invoices, statements and reports
• Dependent on a broadband or mobile broadband connection
• Limited software features (such as no stock control)
• Data ownership – if you stop paying, they can restrict access to your data

For more information, please contact:

Donna Cameron in our Dunedin office.  You can email Donna here. Tim Moriarty in our Christchurch office.  You can email Tim here.

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