Despite its impressive growth streak, some businesses have found that online accounting program Xero was not the right fit. Bookkeeping outfits such as Two Peas sold conversion services to move businesses from Xero to desktop accounting programs such as MYOB. Two Peas’ owner Pam Madytianos said there were diverse reasons for switching back from Xero to MYOB AccountRight Live.
1. No inventory
Xero lacks inventory, a popular feature for retailers and project-based businesses. It recommends users add Unleashed, a dedicated inventory program, which plugs into Xero. But some businesses baulk at paying $40 to $180 a month extra.
2. Add-ons add up
Xero lacked several other features common to desktop accounting programs such as quoting, sales orders and purchase orders. Xero encourages businesses looking for more functionality to use add-on programs such as QuoteRoller and Quotient, which cost another $15 to $40 a month on top of Xero’s $49 a month charge.
“When they start to look at the addons and it becomes quite an expensive monthly fee,” says Two Peas’ Pam Madytianos.
3. Resistant to change
Some accounting firms “are more keen on Xero and so possibly influence clients to change across”, Madytianos says. Businesses might find change a little difficult or just find it easier to stay on their old program.
4. More competition
Businesses which moved to Xero because they wanted the collaborative benefits of online accounting were looking to return to MYOB now that it had developed its own online accounting programs. “The cloud products took a little longer to get off the ground with MYOB and now they’re available and improved they’re opting back,” Madytianos says.
5. Local backup
MYOB AccountRight Live synced a business’ data file between MYOB’s cloud service and the business’ desktop computer. Some businesses liked having a copy of the data in their possession rather than rely completely on the software vendor.