Paperless journalist: Testing Xero online accounting

Xero's invitation to test its online accounting software arrived at the right moment.

I had finally given up on Quickbooks. I doubt the application could ever work for me. And buying a copy of Quicken Home and Business 2010 (which seems right for my needs) seems impossible.*

What's more, my bi-monthly GST return was almost due.

First impressions count. Xero is clean and seems easy to use. It runs in a browser, but it's a responsive as an installed application and everything is accessible.

There's lots of hand-holding. Better still, just about every computer-savvy self-employed person in NZ uses Xero, so there's plenty of peer support on Twitter and other various forums.

In the end I needed help. Not so much with driving Xero, but with getting my head around the way it differs from applications like Quickbooks and MYOB.

On the downside, Xero is still confusing at times. I liked using Quicken Home and Business in the past because it is single-entry accounting. Yes, I know double-entry is the gold standard and people have used it for 500 years or more, but I often find myself not knowing whether something is a credit or debit and I have devil of a time working out what to do with GST refunds or bank charges automatically deducted off invoiced amounts.

Let's face it, accounting is not intuitive. And double-entry accounting is an unnatural act.

Accounting software, by definition, isn't intuitive. The better programs do what they can to hide the difficult stuff and steer users in the right direction, but no matter how good the user interface, a lot of help is necessary. This is, perhaps, Xero's strongest card.It has very good help and an even better help eco system.

When I ran into a minor problem – I couldn't figure out how to treat expenses paid from my personal account as introduced capital – I tweeted for help. It was a Sunday evening, hardly the time you'd expect quick answers. But in minutes I had replies. Thank you @DardeeBooks  and @TeamXero for your quick response.

In practice, Xero's key selling point; software delivered as a serviceand not as a conventional application, isn't that important. The way the program joins up with other online services does matter. Xero isn't paperless as such, but it is neatly integrated with email and grabbing data from banks is a breeze. And support is excellent.

*I tried six software stockists on Auckland's North Shore. Only Harvey Norman had any Quicken Home and Business 2010 boxes on its shelves – but they were empty and the were no discs in stock. Every other store gave me blank looks – or tried to sell me Quickbooks, which is the nightmare I'm running away from.