Pegasus Systems vs Xero
Technology advancement in the modern world is ever-evolving, this has led to the increased demand for accuracy and convenience. Recent legislation has made cloud-based accounting a must-have tool within an agency. The fact that data can be shared, and transmitted while being protected is one reason out of many why agencies are switching to cloud-based accounting. With all this cloud-based accounting software, in this blog, we will compare both software’s and their capabilities.
Who is Pegasus Systems?
Pegasus Systems is a market-leading, fully integrated accounting platform that provides management with real-time and comprehensive data that allows decision-makers to make the decisions that need to be made in order to ensure the agency operates profitably and efficiently.
Pegasus Systems is used by leading advertising agencies in Australia, New Zealand, Philippines, Malaysia, Singapore, Japan, the United Kingdom and the United States. And our footprint is growing so if you haven’t heard of us yet, then you soon will.
Our Marcomms and Creative industries focused platform offer both management and the finance team, a holistic view of the financial performance of the agency and as required, a detailed performance by the project. We have been audited from a compliance perspective many times and have passed, including the stringent Sarbanes Oxley (SOX) compliance.
As a niche player, we are not as widely recognized as players such as Xero, but the truth is, we have the capability to not only reproduce all reports currently run by Xero but generate deeper, more specific job and client data that Xero cannot.
Pegasus Systems comes with plenty of financial reporting features, which is extremely important for businesses of every size. You can customize, generate, and track basically any report you could ever want.
According to the site Bean Ninjas, Xero is the accounting tool made for non-accountants. It’s made with a single ledger. Multiple bank accounts feed into the software under different account codes, which makes the workflow quite different from other accounting tools.
Furthermore, Xero is user friendly and intuitive which is very helpful if the agency has>30 employees. Once the agency exceeds the threshold of 30 employees, it would be the right time to replace Xero and integrate your data from it to Pegasus systems.
Apples and Oranges: Pegasus Advantages over Xero
On the surface, both products can do the same thing – manage your financial function. However, deeper inspection will show you that the Pegasus Systems platform has multiple, and highly important advantages over Xero (and for that matter other platforms such as MYOB, QuickBooks etc). Here is just a quick overview:
Reduced data entry requirements
- AR Invoices require no data entry, all detail entered from the Estimate
- AP invoices easier if PO’s are entered already
- Creates payment files to upload to banking software
Full audit control of all system data entry (no deleting or changing source entries)
- Still possible to make changes/deletions, within the current accounting period, not the original accounting period as with Xero)
All modules are integrated
- An AR update will update AR, Time and Cost and GL
- An AP update will update AP, Time and Cost and GL
All information available to Account Management (i.e. all Accounts Payable detail entered)
Ability to compare Estimated values vs. Actual costs vs. What was billed to the client, from one system and on one report.
Complete Work in Progress accounting managed automatically and fully reconciled to the B/S
Powerful enquiry functions in each module, all can be exported to Excel
Security – each user is enrolled to use specific modules and functions within each module
Ability to build custom reports
- GL reporting, including budget comparison, prior month/year.
- Client Profitability, including staff cost allocation and non-billable client expenses.
- Job Profitability – Ability to write monthly job profitability (plus ad-hoc reports for internal or client use)
- Staff efficiency – ability to write Agency-specific reports from data within the system. This gives you immediate oversight to see how well a long-term project is tracking and where cost inefficiencies exist.
The advantage of switching everything to Pegasus is that you have 100% of the information in one system. With two systems running, you end up with two options; either 100% of the information in both systems (that requires double handling of everything) or 50% of the information in each.