RKN has two products - one for small businesses and one for...

RKN has two products - one for small businesses and one for complex businesses. I cannot speak about Accounts Hosted as I have no experience. However, you speak as though no one has a <$2m turnover anymore operating on cash accounting. RECKON ONE is aimed at small businesses, not the complex structures you speak of. 93% of businesses in Australia have a turnover of less than $2m. Many will have some sort of primary ABN and gst grouped service trust or company structure. These small businesses will have just a booking keeping program to accept end of day totals coming through a range of bank accounts on a cash accounting method. eg, Dental surgery or Coffee shop. I have a range of accounts and two entities with about 200-300 transactions a month. However, It would not matter if this number was 200K / month since RKN has rules for importing transactions and the whole months transactional volume is done in seconds be it 200 or 200k transactions. You have not provided a justifiable reason for small business to have XRO. over RKN

Xero probably can handle multiple currencies whereas RKN cannot and that is about all I can see that is different. I trialed Xero and liked it but I like RKN more since the operational cost is 1/10 with no obvious loss to efficiency. RKN can accommodate two linked entities on the one $20/month plan, whereas Xero you have to pay a monthly subscription for each entity (eg primary ABN, service trust, and distribution bucket company). By the time you add all this up, your over $200/month and the quoted price doesn't even include gst. Businesses looking to trim expenses should take a look at RKN as it really is good value.

XRO is trading at quite a premium on 1-year forward growthadjusted EV/sales relative to RKN. How does XRO intend to increase subscriber growth when there is already such penetration into the Au+ NZ market? XRO might increase international subscribers but there is a huge risk there and the money being spent on that move is high. XRO already has a 12% annual churn rate and you gotta ask why.

The push from accountants into expensive software is a scam that has been pulled over small businesses for years. It's just numbers. RKN can do numbers just as well as XRO for small business. Accounts hosted may be a different story.


Source - ABS.gov.au.