Should I Outsource My Accounting or Do It Myself with Xero/QBO?

Understanding QuickBooks and Xero Accounting Softwares

For businesses that are starting to grow, managing accounts often shifts from being a small admin task to a daily frustration.

At this point, most businesses ask themselves, what’s the smarter way forward?

In this article, we’ll break down the 2 most common solutions:

  1. Outsourcing accounting to a professional team
  2. Using digital tools such as cloud accounting systems

In this post, we will give you a breakdown on how to decide between:
1: Do your own accounting using Xero/QuickBooks
VS
2. Outsourcing accounting to a provider

QuickBooks OnlineXero
Key things we Like• More Accounting-related features
• User-friendly design
• Lower pricing
• Excellent reporting capability
• Project function is free		• More Business-related features
• Better approval control/ access control
• Strong Integrations
• Supports unlimited users
What could be better• More integrations with apps and banks
• More types of user-access controls
• Xero has direct Peppol/e-invoicing while QBO requires Linkfor for e-invoice function

• Bank revaluation/ Unrealised Gains & losses account issue
• Some key features like multi-currency only offered on most expensive plan (Premium)
•
• Little customisation allowed for invoice templates
Pricing (per month,
as of 23 Jul 2024)		• Simple (single-currency): S$26
• Essentials (multi-currency): S$40
• Plus (multi-currency): S$54
• Advanced (advanced features): S$109		• Standard (single-currency): S$61
• Premium (multi-currency): S$80
• Expense Manager add on: S$6 per user
Key Features• Accounting
• Invoicing
• Banking
• Bills & Expenses
• Projects
• GST
• Inventory
• Insights & Reporting
• Multi-Currency		• Accounting
• Invoicing
• Banking
• Bills & Expenses
• GST
• Inventory
• Insights & Reporting
• Multi-Currency
• Xero Expense Manager ($6)
Invoicing Capabilities• Send via email - Yes
• Send via Whatsapp Web - Yes
• Customisation of invoice templates
• Invoice is immediately created, no approval rights except QBO Advanced		• Send via email - Yes
• Send via Whatsapp - No
• Can link to Stripe and Paypal
• Ability to approve invoices (but cannot unapprove)
• Minimal customisation of invoice templates
• Takes a bit longer to edit invoices eg. press 'edit' before allow to change
Accounting-related Features• Adjusting Journal entries (MJEs) allowed across all Chart of Accounts (COA)
• COA can be combined
• No fixed asset module on its own		• Adjusting journal entries not allowed for certain COA such as Cash and AR (which affects Interco billing)
• COA cannot be combined
• Have a fixed asset module
Ease of UseIntuitive user interfaceSlightly steeper learning curve for beginners
User Limits• Simple start: 1 user
• Essentials: 3 users
• Plus: 5 users ( If purchased through Tisch Global, we can offer up to 25 users)
• Advanced: 25 users		Unlimited number of users
Bank Reconciliation• Bank rules
• Easy search, sort and filter function. Faster to do Bank reconciliation		• Bank rules
• No search, sort and filter function. Shows fewer transactions per page
Direct Bank FeedDBS, OCBC, Maybank, Aspire
(UOB not working as at Jul 2024)		• DBS, OCBC, Aspire, Youbiz, Airwallex, Maybank
(UOB not working as at Jul 2024)
Payroll• No Payroll function• Even though have Payroll function - but limited as it is not compliant to Singapore
SG Payroll App IntegrationsPayboy, HReasily, QuickHRTalenox, Payboy, HReasily, Employment Hero, QuickHR
GST F5/Tax Features• Optimised for GST submissions in SG• Optimised for GST submissions in SG
• Direct filing of report to IRAS
Mobile AppYes. 4.7/5 rating on Apple StoreYes. 4.5/5 rating on Apple Store
OCR Software• Yes, QBO OCR available
• Complimentary Hubdoc OCR with any Tisch Global PSG Quickbooks Plan		Yes, Complimentary HubDoc OCR with any Xero plan
Customer Support• 24/7 Online Chat Support
• Email Support
• Phone Support
• Product Training		• 24/7 Online Support
• Product Training
• No phone support
Community SupportSingapore Online Community with forum and Q&A
Singapore Online Community with forum and Q&A
Split by Project / Location• Project - Yes (FREE)
• Location - Yes (FREE)		• Project - No (Top up S$10++)
• Location - Yes
Number of Users worldwide7 million4.2 million

Before we go deeper into the 2 options, here are a few reasons why staying on spreadsheets is not sustainable:

Real Cost of Sticking with Manual Accounting

  • Delayed cash flow from manual invoicing

When invoices are created in Word or Excel, they often get sent out late, in inconsistent formats, and with no reminders. Clients drag payments and businesses waste hours chasing. The result? A business that’s profitable on paper but constantly short on cash.

  • Lost deductions from missing receipts

Receipts scattered across Whatsapp chats or cloud folders may not sound serious until tax filing comes. Every lost receipt is a missed deduction which means you end up paying more tax than necessary.

  • Penalties from IRAS and ACRA

Errors in spreadsheets flow into tax filings. Mistakes in Form C/S can attract penalties up to 200% of tax unpaid. Late Annual Return filings with ACRA incur a fee starting at $300.  

  • Lost credibility with banks and investors

Perhaps the most damaging hidden cost is credibility. 

Here are 2 simple solutions to solve this.

Option 1: Do-it-yourself using Digital software like Xero or QuickBooks

 

Why it works:

  • Automated invoicing: Send professional invoices and set up auto-reminders
  • Real-time dashboards: Full access to your cash flow, P&L, and financial reports 24/7.
  • Bank feeds: Daily reconciliation saves hours of manual matching
  • Receipt capture: Snap and upload receipts instantly, no more missing claims
  • Funding support: Up to 50% of setup, training and subscription is subsidised under the Productivity Solutions Grant (PSG) for SMEs.

Considerations:

  • Consistency matters: Only works if transactions and receipts are entered regularly. If neglected, reports can be incomplete.
  • Learning curve: Staff may need training to use the system effectively.
  • Ongoing subscription: While PSG covers up to 50% of setup costs, there is still a maintenance fee for licenses.

Best for:

  • Companies that want real-time visibility on financial data.

Cost-conscious businesses: Usually cheaper than outsourcing once staff are trained

 

Option 2: Outsourcing Accounting

 

Outsourcing is the hands-off route. Instead of managing the books in-house, you hand them to a professional team.

Why it works:

  • Compliance handled: Annual filings, GST, and tax deadlines managed.
  • Expertise: Access to accountants who understand ACRA/IRAS rules.
  • Time saved: Founders and staff can focus on sales and operations.
  • Predictable cost: Fixed monthly or yearly plans instead of unpredictable clean up fees.

Considerations:

  • Cost vs DIY: More expensive than Excel or ad-hoc bookkeeping, but far more affordable than hiring inhouse staff.
  • Level of involvement: You will receive accurate accounts but day-to-day visibility depends on how you frequently you request reports (monthly, quarterly or yearly)
  • Choosing the right partner: Quality varies between firms. SMEs should look for providers familiar with the right expertise and transparent pricing.

Best for:

  • Businesses that value predictable monthly/annual fees over surprise cleanup costs.
  • Founders who prefer to stay hands-off and focus on sales, operations, and growth.

Which should you choose?

It depends on your stage and priorities. Want to remove accounting from your plate entirely? Outsource.

Want visibility and tighter control over your numbers? Go digital.

You can consider doing both: Outsource compliance such as Corporate Tax filing & Preparation of Annual financial statements, while doing their own monthly accounting using Xero/QBO.

At Tisch Global, we work with SMEs at every stage of growth.

Whichever path you take, our role is the same: To make compliance simple and cost-effective so you can focus on growing your business.

Ready to explore your options?