Although Xero’s inventory management isn’t as robust as that of QuickBooks, it’s still a powerful tool for managing business inventory. While Xero doesn’t offer its own U.S.-based payroll plan, it syncs seamlessly with the payroll provider Gusto, as well as other popular payroll services like ADP and Paychex. Integrating Xero with Gusto ensures that your general ledger will update automatically whenever you process payroll.
You can also use the QuickBooks mobile app to track mileage and run expense reports and cash flow statements. From the desktop suite, you can set custom rules for categorizing all expenses. You can add billable expenses to the invoices you send clients via mobile or desktop. Beyond built-in integrations, QuickBooks offers more than 750 connections with other platforms — a quantity that impressed us. Some of QuickBooks’ most popular app integrations include the payment app BILL, the line of credit solution Fundbox, and the expense management platform Expensify.
QuickBooks Online is an ideal accounting software for freelancers and small businesses that simplifies small business accounting. If you would like to test out the platform before you start a subscription, the vendor offers a free 30-day trial for your convenience. Whether you freelance, have a small business, or operate a larger operation, choosing the right accounting software is incredibly important. There are many options out there, and many people will end up assessing QuickBooks vs. Xero to find which is better.
Payroll Processing
In this guide, we’ll compare Xero and QuickBooks head to head, looking at the pros and cons, features, fees and much more. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. QuickBooks and Xero both have good support and training options, but QuickBooks has phone support while Xero does not, earning it a research score of 4.7 – nearly double Xero’s 2.4/5.
- Whether you’re a small business owner or a franchisor with multiple locations, Quickbooks has the tools and features you need to manage your finances more efficiently.
- With a free plan and paid plans starting at $20 per month, Zoho Books has plans for most budgets.
- Quickbooks offers more advanced inventory tracking features, such as the ability to track inventory levels and create purchase orders.
- If needed, you can easily send customers reminders, and can match any payments received with the correct invoice for efficient bookkeeping.
While QuickBooks may be more expensive than some other accounting software options, it offers a comprehensive set of features and benefits that can save businesses time and money in the long run. However, new users may find that there is a steep learning curve when first getting started with the software. In recent years, QuickBooks has continued to add new features and integrations to its software, making it a versatile option for businesses of all sizes. QuickBooks has long been the gold standard among small business accounting platforms. Although it’s not the only accounting software we recommend, it’s a great choice for any small business. Its prices are competitive, especially if you use QuickBooks Self-Employed.
Xero vs. QuickBooks: At a Glance
It can automate mundane tasks like reporting and invoicing to save you effort and time. Not only do all four QuickBooks Online plans contain Sales Tax Management Features, but they also include tools for maximizing Tax Reductions and managing 1099 payments. You may use QuickBooks Tax Categories, create your own, and automatically support your Expenses as you prepare to file your Business Taxes with these features. You can also arrange your Quarterly Taxes and exchange or export pertinent Tax Data with your Accountant. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability. QuickBooks Live doesn’t offer tax filing or payroll services, unlike Bookkeeper360.
Pricing Model
If you pay VAT, work with suppliers or are a growing business, you can take your pick from Essentials (up to 3 users) or Plus (up to 5 users). The features list grows with the monthly subscription cost, and you can bolt-on extra services such as Payroll for a small extra monthly fee. QuickBooks bills itself as ‘smart, simply accounting software – with no commitment’⁴. It’s particularly good at helping businesses to streamline repetitive tasks, and manage accounting processes from just their smartphone. Xero’s low starting price and built-in inventory tracking make it suitable for freelancers and small businesses. Meanwhile, QuickBooks’ comprehensive features are ideal for growing businesses.
How They Compare: Xero vs. QuickBooks
The former severely limits users’ access to the accounting software. A business can only send five invoices and quotes, enter five bills and reconcile 20 bank transactions. 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 and Xero are two of the best accounting software options with a range of plans and packages that can work for freelancers, small businesses and large enterprises alike. We researched both tools extensively to help you determine the best one for your company.
Additionally, Xero is more cost-effective than QuickBooks Online and offers a user-friendly experience with its customizable dashboard and intuitive layout. Accounting software has become so important to businesses that other programs and platforms often are made to integrate with them to make things more streamlined. The software can usually be accessed online with any device that has internet connection. The complexity of the accounting software, and what it is used for, will greatly affect the overall cost.
Zoho Books stands out for its 24/5 customer support, strong feature set and affordability. It’s ideal for businesses that already use in-house Zoho apps, since it has limited third-party integrations beyond that. All Xero plans come with accountant access, but FreshBooks’ least expensive option does not. Working with an accountant is beneficial, regardless of your business’s size, because they can help ensure you’re interpreting your financial data correctly and provide assistance come tax season.
The software was popular among business owners who had no formal training in accounting. If your business needs many users to access your accounting data and requires low-cost inventory and fixed-asset accounting, Xero is the better choice. If you need comprehensive bank reconciliation, class and best practice to hire or outsource for nonprofit accounting location tracking, good customer support, and easy access to local bookkeepers, then QuickBooks Online wins. At the lowest per-month fee, there’s a big difference between Xero vs QuickBooks Online. Xero’s Early plan is $9 per month, while QuickBooks Online’s Simple Start plan costs $20 per month.
QuickBooks vs. Xero Comparison
Hevo with its minimal learning curve can be set up in just a few minutes allowing the users to load data without having to compromise performance. We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers. Businesses with inventory items should choose accounting software that can track inventory costs, manage COGS, and monitor inventory units. Both have great accounts payable (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.
There are some workarounds, like downloading the basic invoice template, manually changing the language, and reuploading it, but there’s no easy support for multiple languages. Both services have plenty to offer, but in the end, Xero has more integrations than QuickBooks. It’s worth noting that QuickBooks uses a first-party payment processor, which means that the money goes through QuickBooks, while Xero uses third-party processors, like PayPal or Stripe.
If you have a micro business and only need to manage and track a few bills and invoices, then you might do well with Xero’s Early plan. However, if you work with multiple vendors and customers and need more enhanced features, you should consider QuickBooks Online Plus. On the surface, these cloud-based accounting software programs offer similar features to their users. When you delve deeper, though, you’ll find key differences between Xero and QuickBooks Online.