From Xero to Hero: Why Thriday is Better for Small Business

Xero price increase - Update 07/05/2024

Xero have increased their prices again and small business owners aren't happy

What are they saying?

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The thing people are most upset about is paying more for less. with no product improvement and the reduction in plan features small businesses see this as a slap in the face.

Small businesses are the backbone of the Australian economy, and in today's fast-paced business world, it is crucial for them to stay on top of their finances. That's where accounting software like Thriday and Xero comes in. These platforms provide small business owners with easy-to-use, cloud-based solutions that help them manage their finances efficiently and effectively. According to a recent study, 47% of small businesses use some form of accounting software, highlighting the importance of these tools in the business world. In this blog, we will explore the evolution of accounting software for small businesses and why Thriday's next-generation accounting is taking the fight to legacy software like Xero. 

"According to a recent study, 47% of small businesses use some form of accounting software"  

Over the past two decades, the adoption of accounting software among small businesses has seen a significant increase. According to a survey conducted by Wasp Barcode Technologies, only 38% of small businesses were using accounting software in 2001. However, by 2020, that number had increased to 47%. This trend can be attributed to the rise of cloud-based solutions, making accounting software more accessible and affordable for small businesses. Additionally, the COVID-19 pandemic accelerated the adoption of digital solutions, including accounting software, as small businesses had to pivot to remote work and online sales. As a result, the accounting services market for small businesses is expected to hit $12 billion in annual revenue over the coming years.

The importance of accounting software for small businesses 

Accounting software has become an essential tool for small businesses due to its numerous benefits:

1. It saves time and reduces errors by automating repetitive tasks like data entry, invoicing, and financial reporting.
2. It provides real-time visibility into a business's financial health, enabling small business owners to make informed decisions about their operations.
3. Accounting software offers enhanced security features to protect sensitive financial data, reducing the risk of fraud or data breaches.
4. Accounting software can integrate with other business tools to streamline processes and improve efficiency.
   

According to a survey by Software Advice, 93% of small businesses reported that using accounting software improved their financial processes, highlighting its importance in the modern business landscape. 

"93% of small businesses reported that using accounting software improved their financial processes"  

Thriday – The next generation of accounting software 

Thriday is a new accounting platform that has gained popularity among small businesses in Australia. It was founded in 2020 by Australian entrepreneurs Michael Nuciforo and Ben Winford to eliminate the time small business owners waste on financial admin. Thriday's growth in popularity can be attributed to its unique ability to automate banking, accounting and tax. Thriday's success highlights the growing importance of accounting software for small businesses in Australia and the need for accessible and affordable solutions that cater to their unique needs. 

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According to a report by Accenture, automation can reduce accounting costs by up to 60%. Thriday is leading the way globally in automating accounting and bookkeeping for small businesses. Thriday uses machine learning algorithms to automate tasks like categorising expenses and reconciling transactions, reducing the time and effort required for manual data entry. Thriday has taken the mantle as the market leader in automated accounting, which is increasingly popular among small businesses due to its ability to streamline financial processes, save time, and reduce errors. 

Thriday's automation features have been well-received by small businesses, with 90% of Thriday users reporting that it saves them time on accounting tasks, according to a survey by Thriday. Thriday's success in automating accounting highlights the growing importance of automation in the accounting industry and the need for accessible and affordable solutions that cater to small businesses unique needs. 

"90% of Thriday users reporting that it saves them time on accounting tasks"  

In addition to automated bookkeeping and accounting, Thriday offers a range of other value-added features, including receipt scanning, quotes and invoices, expense tracking, and detailed financial reporting. Additionally, Thriday customers can view tax and cashflow forecasts and lodge their BAS returns directly to the ATO. 

Another area where Thriday excels is in user experience and design. A simple user experience is critical for accounting software as it ensures that small business owners can easily manage their finances without navigating complicated systems. Accounting can be daunting for many small business owners, particularly those without an accounting background. Therefore, accounting software that offers a simple user interface and intuitive navigation is crucial. Thriday has prioritised providing a user-friendly interface, making accounting accessible to even the most novice users. Thriday's design is streamlined and modern, providing users with a clear view of their finances at a glance. The platform's features are easy to understand, and its automated processes simplify accounting tasks, reducing the learning curve. 

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Xero – The grand old matriarch of accounting 

Xero, a cloud-based accounting software, was launched in New Zealand in 2006 and quickly gained popularity among small businesses due to its user-friendly interface and accessible pricing model. Xero's success can be attributed to its early adoption of cloud-based technology, providing small businesses with a cost-effective alternative to traditional desktop accounting software. As of September 2021, Xero has over 3.4 million subscribers worldwide and is recognised as a leading accounting software provider.  

However, in recent years, Xero has been considered a laggard in the accounting industry due to its lack of innovation compared to competitors. For example, Xero has been criticised for its slow adoption of machine learning and automation technology, which many other accounting software providers have embraced. Additionally, Xero's pricing model has become less competitive in recent years, with some users noting that it's more expensive than similar accounting software solutions. Despite this, Xero remains a popular choice for many small businesses, particularly in Australia and New Zealand, where many accountants mandate that their clients use the product.  

In many respects, Xero's continued position as the most prominent accounting software depends on its extensive network of accountants. It's important to note that Xero was designed primarily for accountants, and while it has gained popularity among small businesses, many users need help using the software. Xero's complex interface and jargon-filled language can make it challenging for small business owners with limited accounting experience to navigate. 

In a survey by Software Advice, only 53% of small business owners reported being satisfied with Xero's ease of use. This contrasts with Thriday's, which has consistently been praised for its user-friendly interface. Xero's focus on catering to accountants has led to it being perceived as accounting software not designed with small business owners in mind, making it less appealing to those who value simplicity and ease of use.

"Only 53% of small business owners reported being satisfied with Xero's ease of use"  

As small business owners increasingly seek user-friendly accounting solutions, Xero's design will hinder its ability to compete with new entrants like Thriday. 

How do Thriday and Xero compare? 

Managing a business can be challenging, with a never-ending list of tasks to complete each day. From dealing with employee absences to waiting for suppliers and handling unexpected setbacks, something always needs your attention. Tasks like categorising transactions, reconciling receipts, and keeping track of tax deadlines can feel overwhelming and time-consuming for busy business owners. With this in mind, you must understand all the pros and cons when comparing Thriday, a platform designed to automate banking, accounting, and tax for small businesses, with Xero, a legacy accounting software designed for accountants. To help, we have listed some key differences between Thriday and Xero.

Thriday's advanced automation using AI 

Thriday is considered a 4th generation accounting software due to its innovative approach to accounting and bookkeeping. The first generation of accounting software was paper-based and analog. Accountants relied on physical records to manage ledgers and record transactions. 

Second-generation accounting was computerised for the first time, adding more advanced features like accounts receivable and payable management, inventory tracking, and project management. 

During the 2000s, the third generation of accounting software brought cloud-based solutions to the market, enabling users to access their financial data anywhere with an internet connection. 

Thriday takes accounting software to the next level by incorporating artificial intelligence and machine learning technology into its platform. Thriday's advanced algorithms can automate tasks such as categorising transactions, reconciling receipts, and creating financial reports, reducing the workload for small business owners and bookkeepers. Thriday's use of cutting-edge technology and its focus on providing a seamless user experience makes it the first true 4th generation accounting software. 

Thriday's integrated banking, accounting and tax software 

Thriday's unique approach to accounting software distinguishes it from other solutions in the market. Thriday is an all-in-one platform that automates banking, accounting, and tax tasks, providing small business owners a comprehensive solution for managing their finances. ‍

Thriday's banking automation enables users to open bank accounts*, categorise transactions in real-time, and automatically reconcile accounts with ease. This automation saves small business owners time and streamlines the accounting process. In addition, Thriday offers Visa Debit cards* and payments, enabling users to make purchases and payments directly from the platform. This feature further simplifies financial management for small business owners, allowing them to handle all aspects of their finances from a single platform. 

Thriday's unique combination of banking automation, accounting, tax management, and payment solutions makes it a powerful tool for small business owners looking to simplify their financial management. 

Thriday's excellent customer support 

Thriday has gained popularity among small business owners partly due to its exceptional customer support, which many users report is more accessible and helpful than Xero's support. 

Thriday offers users via phone, email, and chat, enabling small business owners to resolve any issues quickly. Additionally, Thriday's support team has been praised for its friendly and knowledgeable service, with many users reporting that their problems were resolved quickly and effectively. 

In contrast, Xero's support has been criticised for being slow to respond and less helpful in resolving issues. Xero does not provide a call centre contact number for one, which is a massive frustration for small business owners who sometimes want to jump on a call to resolve a query.

A survey by G2, a software review platform, found that Thriday's customer support has a higher user satisfaction rating than Xero's support. Thriday's focus on delivering exceptional customer support highlights its commitment to providing a superior experience for small business owners. This factor is increasingly important in the competitive accounting software market. 

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Thriday's strong level of security and data protection measures 

Thriday is renowned for its superior security and data protection measures, which have been designed to safeguard sensitive financial information. Thriday employs bank-grade encryption and two-factor authentication to ensure user data is secure and protected from unauthorised access. 

Additionally, Thriday provides users complete control over their data and enables them to set up user permissions, ensuring that sensitive information is only accessible to authorised individuals. Thriday's security protocols are regularly reviewed to ensure they are up to date and meet the latest industry standards. 

In contrast, Xero has faced criticism for its security practices due to its use of bank feeds, which allow users to connect their bank accounts directly to Xero for transaction importing. Concerns about the security of Xero's bank feeds have been raised, as they require users to provide their banking login details to a third-party service. This creates potential security risks, as sensitive financial information could be compromised if the third-party service is hacked or breached. Additionally, Xero's bank feeds do not support multi-factor authentication, which can further increase the risk of unauthorised access to sensitive financial data. As a result, many small business owners prefer to use Thriday, which has banking integrated directly into the platform. 

Xero is expensive for what you get 

Xero's pricing model has been criticised for many years, with many users noting that it's more expensive than other accounting software solutions like Thriday. One reason for Xero's higher pricing may be its emphasis on providing a robust set of features that cater to the needs of larger businesses. Xero's target market includes mid-sized companies and enterprises, and its feature set reflects this focus.

Additionally, Xero offers more advanced features such as project management, inventory tracking, and purchase orders, which are generally unnecessary for smaller businesses. However, these features contribute to Xero's higher pricing, making it less appealing to small business owners who don't require these advanced features. 

Thriday, on the other hand, is designed to cater to the needs of small businesses and offers a simpler, more affordable pricing model at $29.95 per month. Thriday's pricing is transparent and flat, making it a more affordable solution for small businesses. Overall, while some of Xero's features may be attractive to larger enterprises, its pricing model for small business owners could be more affordable for what you get. 

Update to take affect from 1 July 2024:

Upcoming Xero price changes

On 1 July 2024, the price of Payroll Only, Starter, Standard, Premium 5, Ultimate 20, Ultimate 50 and Ultimate 100 will increase in Australia.

Payroll-only

• Current: $15/mo
• New: $20/mo
• Change: +$5

Starter

• Current: $32/mo
• New: $35/mo
• Change: +$3

Standard

• Current: $65/mo
• New: $70/mo
• Change: +$5

Premium 5

• Current: $85/mo
• New: $90/mo
• Change: +$5

Premium 10

• Current: $99/mo

The Premium 10 plan will convert to the enhanced Ultimate 10 plan at the Ultimate 10 plan pricing ($115 per month) on 1 July 2024.

Premium 20

• Current: $125/mo

The Premium 20 plan will convert to the equivalent tier Ultimate 20 plan at the new Ultimate 20 pricing ($145 per month) on 1 July 2024.

Premium 50

• Current: $170/mo

The Premium 50 plan will convert to the equivalent tier Ultimate 50 plan at the new Ultimate 50 pricing ($200 per month) on 1 July 2024.

Premium 100

• Current: $205/mo

The Premium 100 plan will convert to the equivalent tier Ultimate 100 plan at the new Ultimate 100 pricing ($245 per month) on 1 July 2024.

Ultimate 10

• Current: $115/mo
• New: $115/mo
• Change: no change

Ultimate 20

• Current: $135/mo
• New: $145/mo
• Change: +$10

Ultimate 50

• Current: $180/mo
• New: $200/mo
• Change: +$20

Ultimate 100

• Current: $215/mo
• New: $245/mo
• Change: +$30

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Xero is designed for accountants to use 

Xero has often been criticised for being designed primarily for accountants and bookkeepers rather than small business owners. Xero's interface can be overwhelming for users who lack an accounting background, with features and settings that may be difficult to navigate for those without financial expertise. Additionally, Xero's pricing model, based on the number of invoices and transactions processed, can be confusing and challenging for small business owners to understand. 

In contrast, Thriday has been designed with the small business owner in mind, providing a simple and intuitive user interface that makes accounting and bookkeeping more accessible for users without financial expertise. Thriday's pricing model is also transparent and straightforward, making it easier for small business owners to understand and budget for their accounting software expenses. 

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Recap of Thriday's superior features compared to Xero

1. Thriday's user interface is designed to be simple and intuitive, making navigating easier and quicker than Xero's more complex interface. 
2. Thriday's automated processes help to eliminate the need for manual data entry, saving time, removing errors and reducing the need for expensive bookkeepers and accountants.
3. Thriday's cloud-based platform allows for real-time access to data and real-time updates without manual reconciliation or imports. 
4. Thriday's AI and machine learning capabilities can help automate tasks such as receipt reconciliation and financial reporting, reducing the time needed for manual tasks. 
5. Thriday's streamlined pricing model helps small businesses save time and money by reducing the need for manual invoicing and billing. 
6. Thriday's superior customer support means that small business owners can get friendly help whenever needed.

Thriday is a unique all-in-one platform for small businesses with its intuitive interface, competitive pricing, and robust features. Its automation of repetitive tasks, such as invoice generation and receipt scanning, enables business owners to concentrate on growing their business instead of being bogged down with administrative work. Thriday's cloud-based system ensures that financial information is accessible from anywhere, making it suitable for business owners who are frequently on the move. Furthermore, Thriday provides extensive reporting and analytics tools, enabling small business owners to gain valuable insights into their business performance and make informed decisions. Thriday's top-notch customer service adds to its appeal, making it the perfect accounting solution for small businesses looking to simplify their financial management processes. Check it out today.