Quickbooks vs Xero vs Wave Accounting

[Brian G.]

Planning to scale my VR biz using capital partners which means multiple partnerships and more complexity going forward: ie, multiple properties with dedicated bank accounts for each partnership.

Need to choose a RE diy friendly accounting software that will allow me to do the book keeping on multiple businesses (ie partnerships), ie scale. One day I will hire book keeping out (hasten the day!). If I have a handful of businesses with different accounts tied to each one, what is the most user friendly and efficient accounting software choice?

I’m looking for the best system with the most automation functionality possible. QB, Xero and Wave (recently suggested by a fellow investor) are the 3 I’m considering. Willing to put in the hours to wrap my brain around this critical part of the biz. Looking for advice from all the tax professionals, book keepers and CPAs in BP Nation all of which are slammed right now. When you come up for air please weigh in!

[Michael Plaks]

@Brian G.

None of the accounting software is suitable for what you need straight out of the box. All require customization and understanding the quirks of RE accounting. Plan on one of these two things:
A. Pay someone to set it up for you and train upfront.
B. DIY and then pay someone to untangle it eventually.

QBO is like Windows: controls the market, everyone is familiar with it, expensive, not the leading technology. Do not overlook the "everyone is familiar" aspect because one day (ideally, today) you will need some help, and it's much more available with QBO then with anything else.

Xero is ahead of QBO in automation and is a great product. Except their ridiculous tech support concept that they will not change despite years of protesting by the user community. You cannot talk to anyone at Xero. You leave a message and then wait until someone calls you back. When it's either too late or you're in the middle of something else, like driving. Beats me how they are able to survive on this system, but they are.

Not well familiar with Wave, so no comment.