On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. Another notable difference is that QuickBooks Online lets you upload your file of transactions, so you aren’t required to connect your bank account. With Xero, you have to connect your account to reconcile your transactions. 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.
User Reviews: Tie
QuickBooks Online takes the lead because it’s generally easier to use than Xero. While Xero is easier to set up, QuickBooks has a more intuitive and customizable dashboard and has do i need a cpa for my small business time-saving features. For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero.
The platform makes it extraordinarily easy to review and pay outstanding bills. We also like that Xero has an optional Gusto payroll integration for each platform at no extra cost. QuickBooks and Xero are among the best accounting software platforms for small businesses.
Live bookkeeping services for additional help with your books start at $50/month. Xero does not offer built-in payroll but partners with Gusto, which has plans starting at $40/month plus $6/month per employee. There is no built-in payment processing, although you can choose from several options including Stripe and GoCardless. Quickbooks is a more scalable solution than Xero regarding bills and monthly invoices, which are unlimited in all plans. Xero’s Early plan gives you 5 bills and 20 invoices, but it only offers unlimited invoices and bills starting in its second product tier. Xero vastly outperforms QuickBooks in its fixed asset management tools.
Stronger feature set
All plans include 24/7 live chat support; phone support is available 5 a.m. Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users. Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
- You can only accept payments via card or direct debit with Xero, boxing out clients who prefer newer technologies.
- And if you need assistance, QuickBooks offers robust live customer support to help you along the way.
- It also offers a 30-day free trial so you can test drive the software before committing to a paid plan.
- All Xero accounts allow unlimited users; many other platforms cap user allotments.
Alternative Accounting Software Options
Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero. QuickBooks Online is an industry standard with more than 5 million users worldwide. If you count QuickBooks Desktop users, that number rises to 8 million. With more than 3 million users worldwide, Xero is impairment definition popular but not as ubiquitous as QuickBooks Online.
We also recommend Xero if you’re seeking project profitability data alongside superior bill pay and expense management features. We found the platform’s profitability tools to be highly user-friendly. Your team’s tracked time and expenses power your profitability reports and give you all the necessary information to adjust inputs and crossword puzzle game for kids: money and finance minimize costs. This frees up the cash you need to make the timely bulk payments that Xero facilitates. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.
Banking: QuickBooks Online Wins
It has comparable invoicing features, but lacks an audit trail and doesn’t integrate with third-party apps. Xero Established is a comprehensive plan for businesses managing multiple projects and tracking in-depth financials. It includes everything in Growing, plus multi-currency accounting, project costing and tracking, expense claims, and in-depth analytics.
Danielle Bauter is a writer for the Accounting division of Fit Small Business. 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 business for various consumer publications.
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