Entrepreneur Nathan Tuckwell switched to mobile applications for small businesses that track all of the company’s financial movements and keep records. This software fully covers the information and analytical functions of accounting. The analytical function is similar to the information function. However, it includes a more profound analysis in all areas of accounting, including the use of all types of resources, the costs of producing and selling products, and the correctness of the prices applied, which is especially important in the context of market prices and inflationary processes.
However, accounting is deprived in this case of control systems and, as a result, security. Although the automated operation eliminates the human factor, mistakes are still possible in the interaction of employees with customers, which can only be noticed upon close examination.
Zoho Books provides better application integration, which speaks in its favor over QuickBooks. In addition, Zoho has more flexible tools for customizing native applications for more ergonomic use of the functionality. Xero is a long-standing player in the market and, therefore, can integrate with many components. Also, Xero can connect unlimited users and reconcile bank transactions, a control system – the missing accounting function.
Zoho has higher-ranked subscriptions, allowing small businesses to choose the one that suits them best. Finally, Zoho Books has built-in tax help, advising users on tax issues. Xero has more accessible documentation, proven by many years of experience, and a convenient mobile application, making it much more ergonomic to keep track of financial movements when working with perishable products (Shveda et al., 2021). However, using Xero in case of multicurrency work and a vast number of points is recommended, which is more suitable for big businesses than for small ones.
Cloud applications have many advantages in the form of automation, continuity, ease of integration into a business, and no high costs. At the same time, a potential failure of one of the related programs could lead to the shutdown of all three enterprises, which could cause significant losses. The manager should consider a contingency plan B to keep their establishments running in all situations. In addition, the manager should continuously monitor transactions to avoid fraudulent activities. Otherwise, the pluses prevail over the minuses, which significantly saves a lot of company funds, which would be spent on a financier, accountant, analyst, and auditor in the traditional approach.
Reference
Shveda, N., Marushchak, L., Pavlykivska, O., Liakhovych, G., & Vakun, O. (2021). Accounting Software in Modern Business. Advances in Science, Technology and Engineering Systems Journal, 6(1).