What’s Better? An Accounting Cloud-Based Integration Or A DMS Module?

xero and quickbooks online


When it comes to accounting software, there are a lot of different options to choose from for your dealership. You can go with a cloud-based accounting integration like QuickBooks Online or Xero, which are cloud-based solutions that can integrate with your dealership management software. Or, you can go with an industry tailored DMS accounting solution, which is in most cases an on-premise solution. In this blog post, we will discuss the pros and cons of using a third-party accounting integration vs. a DMS accounting solution for your dealership.

1) Why do dealers prefer a cloud-based accounting integration?

One of the most significant benefits of utilizing a system like QuickBooks or Xero is its simplicity.

This allows your accountant to quickly log in, look at your books, and leave, saving time and money as you’re not paying an accountant to learn how to use a DMS accounting module. Plus you have the added option to outsource your accounting if needed as there are thousands of firms that are certified QuickBooks and Xero Partners that could assist in helping you manage your books.

Another advantage of using a cloud-based accounting solution like QuickBooks online or XERO is that you can access your financial data from anywhere. All you need is an internet connection. This is perfect for businesses that have employees who work remotely or travel often. Also you can then outsource your accounting to anywhere in the world with one of these certified accounting partners. With a DMS accounting module, you would need to be on-site in order to access your financial data.

Also another key benefit dealers enjoy is that they don’t have to worry about maintaining or upgrading the cloud-based accounting software . The provider takes care of all of that for you. With a DMS accounting module, you would be responsible for maintaining and upgrading the software. This can be a time-consuming and expensive process.

2) Why do dealers use a DMS accounting solution?

One of the disadvantages of using a cloud-based accounting solution is that you are reliant on an internet connection. If there are any issues with the internet, you would not be able to access your financial data. With a DMS accounting module, you would still be able to access your financial data even if there were issues with the internet.

Another disadvantage of using a cloud-based accounting solution is that there could be an additional expense if your DMS includes accounting in their contract. However, you could easily make up for these costs in the long run as accountants can work quicker, lowering the time spent working on your books.

Remember – not all integrations are created equal.

Lastly, not all integrations are the same. A Xero or Quickbook Online best-in-class integration will allow your team to operate in the dealership software while allowing your accountant to work in the accounting system. Be sure to do your homework and make sure the integration will cover all of your needs.

What accounting solution should you choose for your dealership?

Overall, there are both advantages and disadvantages of using QuickBooks online or Xero versus a DMS accounting solution. It really depends on your specific business needs as to which solution would be best for you. If you need more flexibility and mobility, then a cloud-based accounting solution would be the way to go. However, if you are looking for an all in one solution, then a DMS accounting module might be the better option.

xero and quickbooks online

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