Kolleno is proud to be listed on both the QuickBooks and Xero app marketplaces. We have built a 21st-century credit control integration that enhances the accounting software that you are already using. Kolleno makes accounts receivable management seamless and efficient in just the click of a button.
Both Xero and QuickBooks are sophisticated accounting tools that businesses of all sizes use around the globe. However, they recognise that no business is identical or faces the same problem. Thus, they require individual solutions. Therefore, both accounting heavyweights introduced app sores. The third-party developers can add custom or tailored solutions depending on specific business needs. Take, for example, the construction industry, which works with a network of subcontractors, or a health industry which is working excessively with appointments. For almost every business function there is an app that connects to the accounting software of your choice and enhances the work of your business operations.
Which Accounting Software is More Common?
Quickbooks desktop software was introduced to the world almost 40 years ago. However, with the development of cloud technology, the cloud version QuickBooks Online saw the world in 2001. QuickBooks Online has been around for much longer than Xero. So it naturally has a higher user count and accounts for over 50% of the cloud-based accounting software market. In 2021 QB Online had around 5.3 million users, whilst Xero had almost 3 million.
Founded in 2006 in New Zealand Xero is a relatively young company. In the beginning, it focused on serving its domestic market. However, by 2019 it already had over a million global subscribers. Today, Xero is positioning itself as an accounting software leader for small businesses with a presence in New Zealand, Australia, the United Kingdom and South Africa, amongst others.
The Pricing and Plans
QB Online has four plans available :
QuickBooks differentiates between plans aimed at Sole traders and Limited Companies: :
Self-employed (£8 per month). Among the features are income tax estimates, automatic import of bank transactions, management of income & expenses, tracking of mileage for business trips, and separation of personal and business transactions.
Simple Start (£12 per month). In addition to previous features, users can: make tax digital-ready, submit VAT directly to HMRC, and send the invoices which customers can pay in one click.
Essentials (£22 per month). Additional features include Management of bills, acceptance and making payments in different currencies, and tracking of employee time and the plan allows to include three users.
Plus (£32 per month): The plan in addition to the “essentials” package offers to manage stock, see the profitability of every project, set smart budgets and allow to add five users.
Xero offers four pricing plans:
Starter (£12 per month). The basic package serves sole traders, start-ups and self-employed. It allows to send up to twenty invoices, enter five bills, reconcile bank transactions, submit VAT returns, Capture bills and receipts, and offer basic reporting.
Standard (£26 per month). This plan is for growing businesses. It offers the same capabilities as the starter plan. However without the limits on the number of invoices or bills. Additionally, it has the bulk reconciliations of transactions and a short-term cash flow and business snapshot
Premium (£33 per month). The premium version allows operating with multiple currencies as well as all the features included in the lower-priced plans.
Ultimate (£49 per month). The ultimate plan focuses on firms that employ more people and advanced analytics and reporting capabilities.
All plans can be enhanced by various add-ons that Xero offers for an additional price. These include payroll, claiming of expenses, tracking of projects, submitting of CIS returns, Xero Pay with Wise, and Analytics.
AR Management with either Xero or QuickBooks Online
Both QuickBooks and Xero can show users the Accounts Receivable (AR) balance of the business. When the business makes a sale, the customer receives an invoice. The outstanding amount (not yet paid) will be shown in that record.
Now, the credit controller (or other staff if there is no such position) is responsible for recovering the outstanding amounts. Usually, they will choose a client with an overdue invoice, create a personal reminder, and manually contact them using email or a phone call, etc. The actions taken by the credit controller are typically recorded on a spreadsheet. If the invoice is still overdue, after the first reminder, the credit controller must perform the same actions all over again. That means manually going through emails, excel spreadsheets etc. This cycle is repeated until the cash is finally retrieved. Otherwise, the account will go into dispute, legal action and so on. These monotonous tasks and workflow can be daunting for finance teams, especially when late payments are widespread.
Late Payments are Stalling the Work of Finance Teams
The research shows that despite generous payment terms in the UK of 45 days on average, late payments account for almost 40%! In the US, B2B payments are also an issue, with a staggering 43% of overdue invoices. Furthermore, the time between a sale and receiving payment (Days Sales Outstanding, DSO ) stands at 65 days worldwide according to a study by Euler Hermes.
While many business processes embraced automation and are using advanced technologies, CFOs and their teams, particularly of B2B businesses, continue to lag behind in the adoption of modern solutions. We designed Kolleno cloud-based AR management and credit control platform to help CFOs. The CFO and their teams get help in adapting to the future of financial operations.
Kolleno and Accounting Software – Perfect Combination
Behind the simple and intuitive Kolleno dashboard, stands powerful machine-learning technology with a proven track record to improve the financial state of any business.
To begin with, once Kolleno connects to your business’s QuickBooks or Xero accounting software, it will suggest a tailored collections strategy based on a snapshot of your AR. However, in the future, the strategy will adjust itself thanks to AI and machine-learning capabilities to reflect the payment behaviour of your clients, the response rates, and time variables.
The user of Kolleno has access to the “action centre” where they can view the actions that they need to perform today and ensure that they never miss an invoice.
Moreover, Kolleno offers omnichannel communications. That means that clients will receive reminders via phone, SMS, email and more. The technology suggests the right timing, messaging and tone to remind, engage and maintain positive client relations.
Kolleno also keeps all records and analyses past interactions with clients to optimise future strategies. Once a client has paid their overdue invoice, there is a payment reconciliation feature.
Automating AR is Shaping Your Company’s Future
The role of the CFO continues to be one of the most important in organisations, shifting away from traditional expectations to more strategic involvement in day-to-day operations. With AR and credit control automation, the CFO can create more modern and sophisticated financial operations to better enable and empower their teams.
See for yourself how Kolleno’s AR management and credit control integration with the accounting software of your choice, QuickBooks or Xero, can give your financial department a competitive edge and contribute to your business’s long-term success.