Xero vs QuickBooks Online: Features Comparison, Pros, Cons

quickbooks online vs xero

Xero is a better solution for large and growing companies that don’t want a cap on the number of users needing access to the software. On the other hand, Quickbooks is a favorite small business accounting software for companies that need to be able to outsource their bookkeeping to a hired accountant. If you need to give accounting access to more than five people, Xero could be the better option for you. QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $200 per month.

Odoo: Good for an all-in-one business management app

Ideally, your accounting software will make your day-to-day routine easier through automation. Here are some key factors to consider when researching and choosing the https://www.simple-accounting.org/ best accounting software for your small business. Like its name suggests, open-source software is open to the public, meaning anyone can access and tweak its code.

User Reviews: Tie

quickbooks online vs xero

You can also track the cost of goods sold and adjust inventory for loss or shrinkage. SummaryThere’s a lot to think about when comparing and choosing accounting software for your business, and not only the monthly cost. It’s tempting to go for the cheapest plan, but this could mean having to pay extra for the add-on features your business needs. With the QuickBooks app, you can stay on top of all your business finances and accounting from your phone. Available for free on iOS and Android when you’re a QuickBooks Online customer, the app offers instant access to your QuickBooks dashboard, including accounting reports, invoicing and much more.

Inventory Tracking

We’d recommend checking the total features offered by the QuickBooks Essentials and Xero Growing plans against your business’s needs. That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary. At different seasons of the year, QuickBooks plans have been between 50% and 70% off for the first three months. Whatever the current deal, users will need to skip their free trial to qualify.

Xero vs QuickBooks: Customer Service & Support

Whether Xero or QuickBooks Online is right for you depends on the specific features you need and how much you can afford to pay. Xero is more affordable than QuickBooks Online, allows you to add an unlimited number of users without additional costs, and offers inventory management and fixed asset accounting in all its plans. QuickBooks, on the other hand, has generally more developed features, such as bank reconciliation without bank feeds, makes it easy to find bookkeeping support, and has live customer support. Wave is a simple solution for very small businesses that need a place to consolidate bookkeeping records and invoices, but don’t have to log more than a handful of transactions each day. The free version of the accounting software lets you track income and expenses, send unlimited invoices and automatically send reminders for late online payments.

Its prices are competitive, especially if you use QuickBooks Self-Employed. Plus, as your business grows, upgrading to the next pricing tier is easy. Every service plan includes all the tools your business needs to oversee its finances from the desktop or via the powerful QuickBooks mobile purchase assets in accounting app. Xero also allows you to create quotes, send invoices and enter bills, and you can accept online payments by credit card, debit card, direct debit, Apple Pay, Google Pay, Stripe and GoCardless. You can also sync your bank accounts for automatic tracking and reconciliation.

  1. Phone support and live chat support are available 24/5 to all paying customers, but third-party integrations are limited compared to QuickBooks Online and Xero.
  2. QuickBooks Live doesn’t offer tax filing or payroll services, unlike Bookkeeper360.
  3. If mobile payment is important to you, QuickBooks’ app might be better.
  4. You can also track the cost of goods sold and adjust inventory for loss or shrinkage.

Perhaps you’ve read our accounting software reviews but remain confused about which of these two, popular accounting tools is right for you. Yes, both have a fixed asset manager that allows you to track fixed assets and calculate depreciation. Fixed asset accounting is part of all Xero’s plans, while it’s offered only in the most expensive plan of QuickBooks Online—Advanced.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about https://www.business-accounting.net/how-is-inherent-risk-assessed-by-an-auditor/ and where and how the product appears on a page. Limited third-party integrations available; no POS or payroll integrations.

Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. You can do a lot with QuickBooks Online, but all the options may feel like information overload starting out. It is possible to purchase cloud access so your team can better collaborate and access the software and its data from anywhere, but costs add up quickly with an additional monthly charge per user. For those who are operating smaller outfits (even as small as a single person, namely yourself), Wave is an excellent choice.

We were impressed with this flexibility — you can make appropriate payments for your current cash flow. We like that QuickBooks offers extensive features in each pricing package. We also like that QuickBooks is transparent about features and pricing online. Unlike some other vendors, QuickBooks leaves no questions about what you get for your dollar.

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. All QuickBooks plans can let businesses track sales tax and manage 1099 contractors, with the exception of the Self-Employed plan, which instead helps freelancers estimate their quarterly taxes.

quickbooks online vs xero

The best accounting software makes it easy to keep a detailed financial record so that you’re ready come tax season. It also includes tools for streamlining accounting tasks, like the invoice process, and gaining insight into your business’s financial health. With your accounting software and data stored online in the cloud, you can access your up-to-date accounts anywhere there’s an internet connection. Your Xero data is backed up regularly and protected with multiple layers of security. As with QuickBooks, you can use Xero to generate custom branded invoices, send client payment reminders, and view invoice payment status. Other shared features include recurring invoices, one-click client payments and mobile invoicing.