Hnry vs Xero - Which One is Better?

31 July, 2024 · 8 min read

Author

Nikita Filippov

Discover the comparison between Hnry and Xero to find out which platform best suits your needs for managing finances, taxes, and accounting.

Hnry Overview
Xero Overview
Hnry vs Xero: Key Differences Between
Wrapping Up

Choosing the right financial management tool can make a difference for your business, regardless of size or type.

These tools can help streamline your accounting processes and keep your financial records in order.

Two popular options in this space are Hnry and Xero. Both offer powerful features designed to simplify financial management but cater to different needs and preferences.

In this comparison, we'll dive into the key differences between Hnry and Xero, covering their core features, pros and cons, and who they're best suited for.

You'll also find our top three FAQs and a handy comparison table to clarify things.

If neither of these solutions seems like the right fit, don't worry—we have an alternative suggestion at the end of the article.

Let's get started!

Hnry Overview

Hnry offers a robust solution designed to simplify tax calculations and financial management for self-employed individuals.

The primary aim is to automate the complex aspects of tax obligations and streamline business financial operations, ensuring users can focus more on their work and less on administrative tasks.

Key Features

Automatic Tax Calculations and Payments: Instantly calculates and pays your income tax, GST, Medicare, and student loans when payments are received.
Tax Returns: Lodges your income tax and BAS returns as they become due.
Invoicing: Create and send unlimited invoices to clients with automated follow-ups for unpaid invoices.
Expense Management: Snap a photo of receipts and enter details to manage expenses easily.
Financial Insights: Provides comprehensive reports to help optimize your business finances.
Personalized Support: Get tailored answers to complex tax queries from professional accountants.
Savings Allocation: Allocate earnings to savings, Super, and investment accounts with each payment.
Quick Payment Options: Accept various payment methods, including credit card payments, at no extra cost.
Hnry Debit Card: Make business purchases and automatically raise them as expenses by snapping a photo of the receipt.
Asset Management: Record assets and manage depreciation accurately.
Allocations: Manage where your payments go, such as savings or investment accounts.
Mobile Access: Manage your finances with the Hnry mobile app.

Pros and Cons of Hnry

Based on user feedback collected from the G2, Capterra, and Software Advice, here are the advantages and disadvantages of Hnry software:

Pros

✔️ Ease of Use: Hnry features a straightforward and intuitive interface, making financial management simple for freelancers and contractors.

✔️ Comprehensive Service: The platform manages all tax-related tasks, including GST, income tax, and ACC levies, significantly reducing the time and effort required from users.

✔️ Real-Time Updates: Hnry offers real-time updates and notifications, keeping users informed about their financial status at all times.

✔️ Customer Support: Users frequently commend Hnry's responsive and helpful customer support team.

Cons

🚫 Limited Customization: The platform may lack customization options necessary for handling more complex financial needs.

🚫 Dependence on Hnry Account: Requiring all payments to be processed through a Hnry bank account may be inconvenient for some users.

FAQ: Our Top 3 Picks

1. What Taxes Does Hnry Pay?

Hnry automatically calculates, deducts, and pays:

Income Tax
GST (if applicable)
ACC/Medicare Levies
Student Loan Payments (if applicable)
Optional Superannuation Contributions

2. Do I Need Accounting Software if I Use Hnry?

No. Hnry manages:

Tax payments and filings
Invoicing and follow-ups
Expense management for tax relief
Payments to government agencies
Automatic payments via the 'Allocations' feature

3. Can Hnry Help if I Have Multiple Sources of Income?

Yes. Hnry handles multiple income streams, including salaries, investments, rental properties, and government benefits. Indicate these on your Dashboard for accurate tax rates.

Who is it Best For?

Hnry is ideal for self-employed professionals, freelancers, tradies, creators, and ABN sole traders, as well as those in the NDIS and wellness sectors, who seek a seamless and automated way to manage their taxes and finances.

Xero Overview

Xero is a cloud-based accounting software specifically tailored for small businesses and sole traders.

Established in 2006, Xero has expanded its reach to 4.2 million subscribers, making it a prominent name in cloud accounting in New Zealand, Australia, and the United Kingdom.

The primary goal of Xero is to automate and streamline accounting tasks, providing users with real-time financial insights and enhancing overall business efficiency.

Key Features

Online Invoicing: Efficiently manage invoices with customizable templates, automated reminders, and the ability to send invoices from any device.
Expense Management: Simplify expense tracking and reimbursements using Xero’s intuitive expense management tools.
Payroll: Maintain basic payroll records, execute pay runs for a small number of employees, and generate payroll reports.
Bank Reconciliation: Ensure accurate financial records with automated bank reconciliation, connecting with over 21,000 global financial institutions.
GST Returns: Automatically calculate GST and expedite the preparation of business activity statements for submission to the ATO.
Reporting: Generate detailed accounting reports to monitor your financial performance and collaborate with advisors in real-time.
Multi-Currency Accounting: Manage transactions in multiple currencies, making it ideal for businesses with international operations.
Fixed Asset Management: Track and manage fixed assets, ensuring accurate accounting and depreciation calculations.
Accounting Dashboard: Access a comprehensive dashboard to monitor bank balances, invoices, bills, and overall financial health daily.
Mobile App: Utilize the Xero app for bookkeeping and accounting tasks on the go, staying productive from anywhere.

Pros and Cons of Xero

Pros

✔️ Ease of Use: Xero is highly regarded for its intuitive interface, making it easy to navigate even for those without an accounting background.

✔️ Integration: The software integrates seamlessly with a variety of third-party apps, enhancing its functionality for inventory management, project tracking, and other tasks.

✔️ Bank Reconciliation: Xero's smart bank reconciliation feature simplifies the process by learning user preferences for classifying expenditures and making helpful suggestions.

✔️ Customer Support: Users consistently praise Xero's responsive and helpful customer support team.

Cons

🚫 Limited Reporting: Some users feel that the reporting features, such as 1099 reports and tracking categories, are insufficient.

🚫 Bank Feed Issues: Users occasionally experience problems with bank feeds, including difficulty connecting with certain banks and sporadic transaction dropouts.

🚫 Complex Reconciliation: Managing currency charges and adjustments can be cumbersome and complex for some users.

FAQ: Our Top 3 Picks

1. How Does the Xero 30-Day Free Trial Work?

Access all Xero features, including add-ons like Xero Projects and Xero Expenses. You can use the demo company or enter your business details. All entered data is retained if you subscribe after the trial. No credit card is required to start.

2. How Do I Move to Xero from Other Accounting Software?

Import data via CSV files after initial setup. This includes charts of accounts, invoices, bills, contacts, and fixed assets. Xero recommends consulting an accountant or bookkeeper during the transition.

3. How Do I Connect to Other Apps?

Use the Xero App Store to find and purchase business apps that integrate with Xero, such as Stripe, GoCardless, Vend, and Shopify, for seamless data syncing and enhanced business management.

Who is it Best For?

Xero is ideal for small business owners and sole traders who require an efficient and automated accounting solution to manage their financial operations.

Hnry vs Xero: Key Differences Between

1. Target Audience and Primary Aim

Hnry is designed for freelancers, contractors, and sole traders who want a simple, all-in-one solution to manage taxes and financial operations with minimal effort.

Its primary aim is to automate tax compliance and streamline financial management.

On the other hand, Xero caters to small to medium-sized businesses and sole traders needing a robust, customizable accounting platform.

It focuses on offering versatile solutions that integrate well with various third-party apps.

2. Core Features

Hnry offers automatic tax calculations and payments, including income tax, GST, Medicare, and student loans.

It also handles tax return filings, provides a debit card for expenses, and offers personalized support from accountants.

Conversely, Xero excels in bank reconciliation, third-party app integration, and comprehensive financial reporting.

It supports invoicing, expense management, and asset management, offering extensive customization options.

3. Ease of Use and Customization

Hnry is praised for its ease of use and user-friendly interface, making it ideal for those seeking a straightforward approach to financial management.

Xero provides more customization and flexibility, making it suitable for businesses with complex financial needs.

Users can tailor the platform to their specific requirements.

4. Customer Support and Service Model

Hnry provides personalized support from professional accountants, ensuring users receive tailored advice and assistance.

Xero offers responsive customer support and extensive resources, although users are expected to take a more active role in managing their finances.

5. Cost and Value Proposition

Hnry charges a percentage of the user's earnings, which can add up for higher incomes. However, it offers significant value through its comprehensive tax and financial management services.

Xero has tiered pricing plans, allowing businesses to choose the level of functionality they need, making it flexible for different budgets.

In summary, Hnry is best for those seeking a hands-off, automated solution for tax and financial management, while Xero is ideal for businesses that require a versatile, customizable accounting platform with extensive integration options.

Wrapping Up

We hope this extensive overview of both Hnry and Xero software has provided enough information to help you decide which solution is right for you.

If you are still unsure, we have an alternative solution that might suit your needs perfectly. Especially if you are looking for a financial solution that can assist you from the very beginning—starting with company registration and continuing through to efficient financial records management and other obligations.

Discover ANNA: Your Comprehensive Financial Assistant

ANNA is an advanced financial management tool designed to streamline business operations, handle taxes efficiently, and maintain organized financial records.

Its primary aim is to simplify financial tasks for small businesses and sole traders, making it easier to manage GST obligations, bookkeeping, and invoicing.

ANNA offers comprehensive support, from company registration to ongoing financial management, ensuring users can focus on growing their businesses without the hassle of administrative tasks.

Key Features

✨ Automatic Tax Calculations: Automatically calculates tax obligations, providing a clear view of upcoming tax bills based on business expenses and income.

✨ Personalized Tax Calendar: Ensures users never miss a tax deadline with reminders tailored to their schedules.

✨ Tax Reminders: Provides timely notifications to keep users compliant with all tax obligations.

✨ Direct GST Logging: Handles GST calculations and logs them directly with the Australian Taxation Office (ATO), simplifying the process.

✨ 24/7 Customer Support: Access to ANNA’s award-winning support team anytime, including holidays, for assistance with any questions.

✨ Professional Guidance: Offers help via email during the early stages to manage finances effectively.

✨ Comprehensive Assistance: Provides expert help with managing Business Activity Statements (BAS) and GST calculations to ensure accuracy and compliance.

✨ Bookkeeping Score: Helps maintain tidy records, saving on taxes by providing tips to improve bookkeeping.

✨ Automated Receipt Matching: Matches receipts to transactions and categorizes them for optimal tax relief.

✨ Efficient Bookkeeping: Allows storing and managing receipts, invoices, and documents in one place.

✨ Connect Accounts: Links other bank accounts to see all finances in one place, simplifying financial management.

✨ Automated Follow-Ups: Automatically follows up on unpaid invoices, ensuring faster payments (80% of invoices are paid within a week).

✨ Seamless Financial Management: Easily extracts key details from transactions and shares documents for smooth financial management.

Best For?

ANNA is best suited for small businesses and sole traders looking to streamline their financial operations, manage GST and taxes efficiently, and maintain organized financial records with minimal hassle.

Ready to simplify your financial management?

Get started with ANNA today and experience the ease and efficiency it brings to your business!