I have learned never to underestimate the importance of live product support, particularly when it comes to managing my money. Another benefit is that QuickBooks Online is better for small businesses, as you’re able to scale with your growing company. The Report Center in QuickBooks Online offers a central location to process reports, which include all standard financial statements as well as a healthy selection of management reports. The Contacts category lets you manage all contacts, from customers to suppliers to contractors, from one location. Reporting in Xero is solid, with a variety of financial statements and management reports available.
With QuickBooks, you can connect any bank account to the platform provided that the bank is supported under the Open Banking regulations. Xero and QuickBooks Online are both user-friendly, streamlined and cloud-based. They both have an app, and pricing based on a monthly subscription model.
QuickBooks has the most intuitive and advanced invoicing features. You can send custom invoices, set up recurring invoice templates, match payments, and even batch invoicing (on the advanced plan). QuickBooks⁴ accounting software has been around in one form or another since 1983, through accounting company Intuit. QuickBooks is a very established company and product, with both desktop accounting software you can install, and cloud based options which can be accessed from anywhere.
Intuit also offers a cloud-based payroll product called QuickBooks Online Payroll. While you won’t get a discount by bundling QuickBooks’ accounting and payroll software, it’s simpler to buy and pay for both plans at once if you plan to pay employees with QuickBooks Payroll. QuickBooks is available both online and via desktop and is ideal for businesses that outsource their accounting tasks to a bookkeeper or accountant. This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account. Xero is ideal for businesses that keep a team of bookkeepers or accountants in-house.
For businesses that rely on invoicing, generating and sending accurate invoices is a critical feature of accounting software. QuickBooks Advanced plan users can access 24/7 phone and chat customer service. Other plans still have online chat and phone options, but the hours are more limited. Businesses of all types and sizes need to track their transactions and expenses. Any accounting software will offer some kind of expense tracking, but they don’t all do it the same way. Xero can integrate with more than 800 third-party applications, including tools for payments, subscription management, invoicing, payroll, CRM, and more.
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With the QuickBooks Online app, you can enable mileage tracking and drive. Your phone automatically detects that you’re driving and uses GPS to measure the distance. Furthermore, industry-specific needs can also play a role in your decision. Certain industries may have software integrations or specialized features that are better supported by either Xero or QuickBooks. Evaluate your industry requirements and research the compatibility of each software with your unique needs. Conversely, if you have a smaller business and value a user-friendly interface with robust features, Xero could be the ideal fit.
- The first two plan tiers limit billable clients, but not on invoices.
- A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.
- You can send custom invoices, set up recurring invoice templates, match payments, and even batch invoicing (on the advanced plan).
QuickBooks (Figure C) has a core payroll function built into its system, while Xero requires users to integrate with Gusto to handle payroll. Even better, inventory management is available at no additional charge with every Xero plan, which is why we declared Xero the winner for this particular category. Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. For an additional $50, add a Bookkeeping setup with a Live Bookkeeper.
QuickBooks Online vs. Xero
Contact management systems help you keep track of their information. This accounting software is very user-friendly for every type of person. You don’t have to have an excellent knowledge of accounting principles to use this software. A major selling point of Xero is that you can have unlimited users on your account.
We evaluated the features, pricing and customer support offered by both QuickBooks and Xero. We also set up trial accounts to get hands-on experience with both products and determine their user-friendliness for ourselves. QuickBooks Online is an accounting software tool developed and marketed by Intuit. Its products are intended to help businesses of all sizes, from small and midsize businesses to corporations and enterprises. The cloud-based QuickBooks Online lets business owners manage accounting, accept online payments, manage and pay bills, and much more.
QuickBooks Online & Xero Comparison Summary
It’s most basic ‘Starter’ plan is for sole traders and startups and offers up to 20 invoices/quotes and 5 bill payments a month. The Standard plan doesn’t have an upper limit on invoices and bills, while the most expensive Premium plan lets you manage accounting in multiple currencies. Both Xero and QuickBooks Online are excellent at inventory accounting and automatically calculating the cost of your inventory sold. However, inventory accounting is included in all Xero plans, but QuickBooks Online only includes it in the Plus and Advanced versions. So, if you’re looking for a low-cost inventory management system, consider Xero. Payroll software manages and automates payments to your employees.
The cheapest combo, QuickBooks Simple Start + Payroll Core, is $75 per month plus $5 per person. The monthly subscription price is a bit higher than Xero’s Gusto integration, but the price per user is lower, and it also has a few extra features like local tax filing. Xero’s payroll is through a deep integration with a third-party service called Gusto.
If you’re just starting out, both tools also allow you to import historical transactions. Overall, QuickBooks and Xero are relatively equal in terms of transaction and expense tracking unless tagging your transactions When Are Credits Negative in Accounting Chron com is an important feature to you. While the vocabulary may vary between the two products, they both offer electronic banking, excellent invoicing, payment acceptance, and bill management capabilities.
About Xero
Whether Xero or QuickBooks Online is right for you depends on the specific features you need and how much you can afford to pay. If you need multiple user access at a low price and you manage fixed assets, you might consider Xero. However, if you’re willing to pay more for a comprehensive bank reconciliation feature and strong customer service, QuickBooks Online is preferable.
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Their self-service payroll option is $18 per month + $4 per employee per month. While QuickBooks offers help support documentation, you will need to set up and file your own W2 and payroll taxes. They also have a full-service managed payroll solution for $40 per month + $4 per employee per month.
QuickBooks Online vs. Xero: Feature comparison
With QuickBooks Online, users can efficiently manage their financials while enjoying seamless integration with other business applications. QuickBooks, on the other hand, offers a vast learning center that includes step-by-step guides, video tutorials, and interactive courses. Their resources cater to different learning styles, allowing users to choose the format that works best for them. QuickBooks also offers certifications for users who want to demonstrate their expertise in the software. QuickBooks and Xero are two leading players in the market, offering free versions that cater to the needs of small businesses.
She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about travel, food, and books for various lifestyle publications. 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.