Xero vs QuickBooks: Which Accounting Software Is Best for Your Business?

The Desktop plan offered by QuickBooks starts at $349.99 per year, goes up to $804 for your first year and renews at $1,340 per year. Yes, you can use Xero to track inventory, and the feature is available in all plans. They’ll help you reconcile your bank and credit card statements and prepare monthly reports.

  • QuickBooks’ rich feature set, while being a strength, can also be overwhelming for smaller businesses or those with simple accounting needs.
  • You’ll want to create a contract that outlines details, such as deadlines, rates and expectations so that everyone is on the same page.
  • The ability to integrate a software product with other applications can increase its functionality tremendously.
  • After knowing the key features above, we can conclude that both Quickbooks and Xero can give your business solid accounting operations.
  • Ultimately, whichever accounting software platform you select—Xero or QuickBooks Online—will enable you to manage and optimize your accounting procedures effectively.
  • QuickBooks and Xero offer similar basic, user-friendly accounting features, with a few differences that cater to their base regions.

QuickBooks will automatically match receipts to recorded expenses or generate new expenses accordingly. We were especially impressed with Xero’s built-in Gusto payroll integration. When we tested Xero, this seamless integration powered the entirely automatic updating of our accounting records when we ran payroll through Gusto. We also liked Xero’s built-in integrations with the payment processor Stripe, the CRM HubSpot, the email marketing platform Mailchimp and the e-commerce platform Shopify. To get it, you'll just need to log in, visit Xero Central, and submit a query. You can then track its progress through a section called “My cases,” which details which specialist is working on it, the current status, and expected response time.

It offers a nuanced approach to project management and financial tracking. Xero empowers businesses with its robust reporting and analytics capabilities. The platform offers an array of customizable reports, allowing users to tailor insights to their specific needs. This adaptability extends to key metrics, enabling users to focus on the data that matters most. Real-time accessibility ensures both historical reports and a current snapshot of the business’s financial health. Xero’s VAT calculator is a handy tool that makes calculating Value Added Tax (VAT) easier for businesses.

Xero vs QuickBooks 2024 Comparison

We researched both tools extensively to help you determine the best one for your company. In this article, we list their core features, pricing, pros and cons, as well as the type of company each bookkeeping tool is suitable for. The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing.

  • If you need comprehensive bank reconciliation, class and location tracking, good customer support, and easy access to local bookkeepers, then QuickBooks Online wins.
  • Xero and QuickBooks both offer monthly subscriptions with pricing plans in the same ballpark, and each offers an add-on option for payroll.
  • They both offer a wide range of features, an easy-to-use interface and competitive pricing.
  • QuickBooks offers more reports than Xero, plus you can create custom reports and tags.

While it has numerous advantages, there are a few drawbacks to consider before deciding if Xero is the right choice for your business. Again, if you opt out of the free trial, you’ll get 50% off the base fee for your first three months of service. Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Depending on the plan you select, QuickBooks Online’s monthly prices run from $30 for the Simple Start plan to $200 for the Advanced plan.

How much does QuickBooks Online cost?

For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero. Both have great A/P features, but QuickBooks Online is slightly better due to its ability to generate recurring payments. Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically. Another notable difference is that QuickBooks Online lets you upload your file of transactions, so you aren’t required to connect your bank account. With Xero, you have to connect your account to reconcile your transactions.

Xero vs QuickBooks: Pricing

Plus, read receipts let you know when customers have seen an invoice and if it’s been paid. Xero's only customer support options are an email system and a knowledge base. QuickBooks and Xero are both solutions with great tools for core accounting needs like bookkeeping, account receivable tracking, and payroll functionality at an additional cost. Xero’s invoice entry screen, sources and uses of funds table seen above, is clean and uncluttered with easy look-up options available for most fields. Once the invoice is completed, you can send it via email with online bill payment options included in the email. Once payment is received, Xero will automatically apply the payment if paid online, or you can process the payment during your regular bank reconciliation process.

Xero is a cloud-based accounting software which was first launched in 2006 in New Zealand. In Quickbooks’ most basic plan, Simple Start, you get access to powerful accounting and invoicing functionality, but are limited to one user. Quickbooks is a powerful accounting software with all the functionality you need to run a business in 2023. Furthermore, Quickbooks has several plans, allowing you to scale the software to your needs. The platform’s reporting suite is among the most powerful we encountered while reviewing accounting software. QuickBooks offers more invoicing tools and client payment options than Xero.

Summary – Xero vs. QuickBooks Online

This user review score helps us give more credit to software products that deliver a consistent service to their customers. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.

Granted, this doesn't mean Xero is the most cost-effective option for your business needs. Here's how each accounting software vendor breaks down their services, so you can see how they compare. Like QuickBooks, Xero has a function to automatically calculate sales taxes for each invoice, as well as state or city taxes. A tax default can be set for any purchase, and Xero offers an integration with Avalara TrustFile in order to help you file your returns. Xero's software also lets you map your accounts to different categories of tax form, keeping everything organized. Xero offers inventory tools across all its plans, marking a step up from QuickBooks, which offers inventory tracking with its Plus and Advanced plans, but not with Simple Start, QuickBooks' entry level plan.

Xero to Quickbooks Online migration using Dataswitcher

Quickbooks Online permits users to claim expenses across all of its subscriptions. Finally, when comparing Xero vs QuickBooks, Xero’s Customer Service shines out. Although both platforms have extensive self-service materials on their websites, Xero additionally offers Free 24/7 Online Assistance to all of its users, regardless of plan level or timezone. Furthermore, Xero does not outsource customer service; all reps are Xero employees. Affordability and scalability are paramount considerations, and here, Xero is more affordable and scalable than QuickBooks. With Xero’s low starting price, businesses can access a comprehensive feature set without breaking the bank.

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