The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance. This takes into account customer management, revenue recognition, invoice management, and collections. QuickBooks and Xero are two of the best accounting software options with a range of pricing plans to fit multiple budgets. We researched both tools extensively to help you choose the right accounting software for your business. In this article, we compare their core features, pricing and pros and cons to help you decide which one is the right accounting software for your company.
In our eyes, QuickBooks’ expense-tracking features are among the best around. We recommend Xero for any business that places timely, full vendor payments at the top of its priority list of accounting software features. The platform’s bill pay tools are the best we encountered when reviewing accounting software. We especially like that you can use Xero to schedule batch payments in advance, whether for one vendor or several. Scheduling payments is an excellent way to avoid late fees, keep up with purchase orders, and keep your finances in top shape. Unlike QuickBooks, Xero supports unlimited users and organizations for all accounts.
QuickBooks Online vs. Xero: Which Software Is Better for Your Business in 2024?
As your business grows, you’re likely to need different features and tools to meet changing requirements. While QuickBooks and Xero offer multiple pricing tiers for varying needs, QuickBooks makes it easier to scale up with the wider Intuit software suite, including QuickBooks Enterprise Solutions. Additionally, QuickBooks offers 50% off on all pricing plans for new customers for six months.
In comparison, Xero’s mobile app received an average rating of 4.7 on iTunes and 3.5 on Google Play Store. Xero specifically works better with companies that offer subscriptions, rentals or memberships, as the software can automatically perform tasks at set time intervals. Their proactive development schedule also ensures that your software will be consistently improving and staying up-to-date. In fact, Xero has quickly become a fierce competitor to QuickBooks after much less time in the industry. While both tools offer a lot of the same features, the main differentiator is how well each company does these features.
If you can’t justify the $90-per-month QuickBooks Online Plus plan, you won’t get inventory management, because QuickBooks Online’s lower-tier plans don’t come with it. This could be a real shortcoming for small online retail businesses, for instance, that need to keep track of their products and the materials used to make them. All of Xero’s plans come with inventory management so business owners can track what’s in stock and which products are selling. Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit. This is because QuickBooks was designed for small businesses that might not have an accounting background, whereas Xero was designed with accountants and bookkeepers in mind.
For instance, you can track income and expenses by classes and locations. Both platforms let you set up and map products and services to your chart of accounts. Both Xero and QuickBooks Online are optimized for small to mid-sized businesses, so large enterprises with more complex requirements may struggle to tick all of their boxes. Xero and QuickBooks Online are two of the most popular accounting software platforms. Here’s our comparison of their pros and cons to help you decide between them. A standout Xero reporting feature is the ability to mark the reports you run most often as favorites.
Xero is considered a top QuickBooks alternative because of its comparable core features and budget-friendly pricing. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; however, there is a learning curve. Plus, Xero staffers can call people back to discuss their cases over the phone, giving you that phone support you need, albeit in a roundabout way. 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. Neither of these is better than the other, but it pays to be aware of the differences. There are integrations between hundreds of tools available with both QuickBooks and Xero, so choosing between the two here depends on your specific needs.
What is QuickBooks Online?
For instance, QuickBooks Online lets you accept payments but can’t record bills while Xero allows you to enter bills but can’t process online payments. If mobile payment is important to you, QuickBooks’ app might be better. If you often need to record bills and bill payments on the go, Xero’s mobile app might be preferable. One user expressed that they like that QuickBooks has more robust accounting features than most competitors. Some also explained that QuickBooks offers excellent expense-tracking features. We agree with this, and one of the features we like is that QuickBooks remembers the categories of items that have been entered previously.
- Our Xero accounting vs QuickBooks Online comparison will help you evaluate both invoicing and business accounting software solutions.
- Our only QuickBooks bill-paying disappointment was that you can’t access the feature via the Simple Start package.
- Its Online version allows up to 25 users at no additional cost, provided you’re paying for the Advanced plan.
- With enhanced bookkeeping functionality that includes inventory management and expense tracking by class or location, QBO offers an established plan to meet most business needs.
QuickBooks is also better for businesses that need to track inventory, as it has built-in inventory management features. Xero also has inventory management, but it’s not one of its core functions. More specific categories – Business, Accounting, Payroll, Projects, and more – have their own dashboards, accessible with a horizontal sidebar. You can click any data to see a full, detailed breakdown, complete with historical context, and you can set up data tracking to automatically generate specific reports. Compared to QuickBooks, Xero’s time tracking features are easy to use. You can simply download the free Xero Projects app on iOS and Android, using it to record time and costs, as well as seamlessly and automatically feed the data into invoices and reports.
That said, Xero’s bill pay tools outperform those in QuickBooks at lower prices than QuickBooks’ two highest-end pricing packages. Both platforms ultimately ranked among the most affordable we encountered, and we appreciate how transparent both are in their pricing. However, QuickBooks https://accountingcoaching.online/ is our winner because you get much more with its two highest-priced tiers than with Xero’s highest-priced tier. You might pay more for QuickBooks, but the platform’s value per dollar justifies its higher costs. We like that QuickBooks offers extensive features in each pricing package.
QuickBooks: World’s #1 Accounting Solution
With QuickBooks, you can even take photos of your physical receipts, which the software automatically matches to existing expenses. Transactions can be imported from bank accounts, credit cards, or third-party services like PayPal and Square. 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. QuickBooks offers unlimited email, phone and live chat support for all customers, as well as an extensive online support and FAQ section. Conversely, Xero doesn’t provide phone support but does offer online support to customers.
With enhanced bookkeeping functionality that includes inventory management and expense tracking by class or location, QBO offers an established plan to meet most business needs. QuickBooks and Xero are popular accounting software platforms for small businesses. We’ll compare their essential accounting features, pricing, integrations and more to help you choose the right hr has evolved from being a cost centre to profit centre accounting software for your needs. Xero offers simple inventory tracking software that can track up to 4,000 finished items. With Xero, you can view the number of items you have available and see the total value of stock on hand for any item. Its inventory management reports will show you how well different items are performing and which ones are the most profitable.
We like that this is a built-in platform feature you can also use from the mobile app. However, Xero is missing some of our favorite QuickBooks expense-tracking features, such as cash flow statements. You can also use the QuickBooks mobile app to track mileage and run expense reports and cash flow statements.
Why You Can Trust Fit Small Business
While QuickBooks is the most notorious, other popular software like Xero could be the better choice for running your business. You can also see which one provides more functions that you need or which has more flexible pricing plans for your current situation. Using a clear table to match their features will significantly increase the likelihood of finding the best product for your company.
Perhaps you’ve read our accounting software reviews but remain confused about which of these two, popular accounting tools is right for you. Xero and QuickBooks Online are robust accounting software programs and, in our case study, both prove why they’re the leading tools in the industry. They may have almost the same features, but each has its own strengths and drawbacks.
