It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image. On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. QuickBooks Online came out on top for several features, ease of use, and customer support among others, but Xero wins in pricing. We’ll explain our Xero vs QuickBooks comparison findings in greater detail in the following sections. If you’re outside North America, you can access country-specific payroll as an add-on in some regions, including the UK. Xero offers three pricing tiers, ranging from $9 per month to $60 per month.
Who Uses This Software?
Your team’s tracked time and expenses power your profitability reports and give you all the necessary information to adjust inputs and minimize costs. This frees up the cash you need to make the timely bulk payments that Xero facilitates. Xero and QuickBooks are both great accounting software options for small businesses. They both offer a wide range of features, an easy-to-use interface and competitive pricing. The desktop version is installed on a computer, while the online version is accessed through a web browser.
Even though Xero offers a tempting $9/month plan, the reality is that it’s too restrictive for anything but the smallest side hustles that need less than five invoices and bills per month. Both Xero and QuickBooks have excellent mobile apps, making it easy to scan receipts on the go to avoid paper piling up. This easy-to-use and feature-rich software is ideal if you have no bookkeeping experience and want top-notch customer support. Regardless of what route you choose, make sure to do your research and get hands-on with free trials to find the accounting software that’s right for your business.
How many users can access Xero?
- You can add your logo to your invoice templates, and change the color to fit your business’s branding.
- The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities.
- Xero also lets you send quotes and estimates that can quickly pull up data on contacts, inventory, and pricing.
- Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks.
- 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.
The main differences between Xero vs QuickBooks lie in features and pricing. Xero is more affordable than QuickBooks Online, always includes unlimited users, and offers inventory management and fixed asset accounting in all its plans. Xero accounting software is a cloud-based system that helps small businesses manage their finances.
However, QuickBooks only offers them with its higher-tiered plans, while they come standard with all Xero plans. As a larger business, you can also look into Intuit’s wider software suite, including QuickBooks Enterprise Solutions, which claims to have 6x the capacity of other QuickBooks editions. The Enterprise edition scales up to 30 users, supports up to 1 million list items, and offers advanced reporting, inventory, and printing. With this system, you can add products or services, track inventory, make adjustments, make internal notes, and add attachments. There are a handful of differences between the features of QuickBooks Online and Xero. Xero has a more impressive contact management feature with smart lists for targeting specific customers.
Best Small Business Accounting Software
Read our QuickBooks Bill Pay review for more details on the solution. QuickBooks is a great bookkeeping solution for freelancers, small to medium how to read a cash flow statement and understand financial statements businesses, and companies that want a full product suite. Its more complex interface and higher learning curve make it best suited to those with accounting experience or who are willing to hire an experienced accountant. Most bookkeepers are familiar with QuickBooks software, so finding someone to assist with your accounting needs is easy. On the other hand, Xero has more than double the integrations as Quickbooks, with over 1000 tools to add to your online accounting software. Link inventory and invoicing tools, and integrate with Gusto Payroll or Hubspot CRM.
If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit. 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 what is full charge bookkeeping in top shape. Xero Established is a comprehensive plan for businesses managing multiple projects and tracking in-depth financials.
QuickBooks percentage change definition Online didn’t always have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced. Now, just like Xero, QuickBooks Online allows you to record a fixed asset purchase, track the asset, and calculate depreciation. We declared this category a tie because Xero and QuickBooks Online aced it. Both providers allow you to record adjusted journal entries, modify your chart of accounts, and provide accountant access. However, while Xero allows for unlimited users, QuickBooks Online lets you have only up to 25 total seats, depending on the plan you select. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs.
QuickBooks Online pros and cons at a glance
QuickBooks Online outclasses Xero in this category as it offers more useful features that aid in setting up the software. Xero took a hit for its lack of assisted onboarding support and new company wizard, but it does offer the ability to import beginning balances—a feature that QuickBooks Online lacks. QuickBooks Online leads in many categories, but Xero has some slight advantages in terms of fixed asset management, project accounting, and taxes. We tackle these differences between Xero and QuickBooks in detail in the following sections. Xero best suits medium to large businesses but works for all businesses.
Entry-level plan limits bills and invoices to five and 20 per month, respectively. The vendor offers a guide to manual journals to help you get started. With Xero, you get access to built-in reports with highly customizable layouts. We liked that these reports are interactive, which makes it easier for us to measure key performance indicators (KPIs). We also found it easy to apply formulas in Xero to compare our budget and actuals side by side.
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