Which accounting software to use?

We recommend using Xero or Quickbooks for accounting software, but we prefer Xero.

Xero is more user-friendly than QuickBooks. It is easy to categorise transactions and less likely to accidentally create manual journals - i.e. manual recording of transactions and adjustments to your accounting file. We default to recommending Xero for most people.

In QuickBooks, it is easier to create more detailed business reports. However, how it handles Expenses, Receipts, and invoices can cause your accounting software to differ from your bank statement, which is a significant issue in accounting. This can be confusing and costly to rectify.

Buying Xero through your accountant is advisable, as they can often obtain a better price for purchasing the software in bulk. If you want us to set you up, please feel free to contact us. Regarding accountancy services, the Big 4 firms usually don't offer bookkeeping or payroll services, or they are prohibitively expensive. While there are many small accounting service providers, we established Novabook to provide top-notch service at a price that startups can afford. If you'd like to talk to us, please feel free to contact us.

More importantly, do not use anything other than Xero or QuickBooks. FreshBooks is optimised for the USA, and NetSuite and the like are too heavy-duty. Startups are only moving away from tools like Pandle or other light-touch tools, and early migration of accounting software isn't strictly necessary.