Xero VS Quickbooks Which One Works Best for Your Business?

QuickBooks has a more complex interface with a higher learning curve best suited to those with accounting experience or who are willing to hire an experienced accountant. Most bookkeepers are familiar with QuickBooks software, so it’s easy to find someone to assist with your accounting needs. 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.

  1. Additionally, some users complained that QuickBooks Online is a bit expensive.
  2. Once the invoice is completed, you can send it via email with online bill payment options included in the email.
  3. We also like that QuickBooks is transparent about features and pricing online.
  4. While the vocabulary may vary between the two products, they both offer electronic banking, excellent invoicing, payment acceptance, and bill management capabilities.
  5. Another important distinction to make when comparing these two is how they structure their pricing/packages.

Here’s our comparison of their pros and cons to help you decide between them. One of the best CRM software tools around, Zoho, CRM is consistently a leader in the customer relationship management space and an essential addition for any business looking to improve their practices. Like a cloud-based software suite, QuickBooks Online is available to a whole team of users and everyone can contribute simultaneously without causing any hiccups. That means all of your support teams can be involved, vastly improving accounting and administrative workflows. Even though it’s constantly evolving, QuickBooks is always easy to use, simple to navigate, and understandable, even if you’re not big on technology. It simplifies a lot of the complex accounting and bookkeeping processes and improves efficiency, so you can get back to doing what you do best — running your business.

Expense Tracking

Pricing levels for Xero and QuickBooks Online are very similar, with both applications offering three pricing plans. For example, both mid-level plans are similar in price and scope, with the Growing plan in Xero costing you $32, while QuickBooks Online’s Plus plan is $35. The Contacts category lets you manage all contacts, from customers to suppliers to contractors, from one location.

Features: QuickBooks Online Wins

We break down the prices in our QuickBooks Live Bookkeeping review’s pricing section. Both Xero and QuickBooks Online do a great job of accounting for inventory and calculating the cost of your inventory sold automatically. However, inventory accounting is included in all Xero plans while it’s only in the Plus and Advanced versions of QuickBooks Online. So, if you want a low-cost inventory management solution, go with Xero. We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different products compare with each other and how they work in real-world scenarios.

The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information. Both have great 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.

Another difference is that Xero doesn’t allow you to group your report by customer or vendor the way QBO does. You can even group by product or service, date created, or amount with QBO. Both applications are easy to use, and users can easily see results from the dashboard. balance sheet vs income statement difference and comparison Xero uses AI and machine learning, including HubDoc, to automate workflows, available in all of its pricing plans. Both Xero and QuickBooks Online can be used and synced with online payments processing transactions from different online payment processors.

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 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. 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.

FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. 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. For example, you can’t use Xero to accept tips via invoices as you can with QuickBooks.

Fit Small Business Case Study

ZipBooks can even take over your books for you if that’s what you’re looking for. ZipBooks offers a full range of customizable financial, accounting, sales, expense, and even team reports that you can export or print as PDFs. Results are displayed in a beautiful and intuitive way, grouped how you need it, (whether by category, customer, vendor, or time) so that you can see what’s going on at a glance. Time periods on reports go from earliest first and move forward in time. Plus, you can create reports based on customized tags so that you can see information for individual locations, product lines, or sales channels. ZipBooks gives you unlimited invoicing and customers right from the start, with fully customizable invoices, colors, and logo upload.

Messaging might be the best way to go, though, as wait times can be long. Xero lets you fill out a help request form, and then they contact you by email after they’ve received your request. It can be a little hard to find this form initially, but you can search for it in the help section. Both Xero and QBO offer automatic transaction feeds when you connect to your bank. As for how reliable the feeds are, you may want to test out both to see which is most prompt and accurate. Quickbooks Online (QBO) is a personal and business bookkeeping software developed by Intuit in the early 2000s to help small businesses with their bookkeeping systems.

The top products based on usability and customer satisfaction, as rated by user reviews. For QuickBooks Online, optional one-time bookkeeping setup is $50.00. QuickBooks Online is an ideal accounting software for freelancers and small businesses that simplifies small business accounting.

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. ZipBooks offers a completely free starter level that includes unlimited invoicing and bookkeeping. We also include our Business Health Score and Invoice Quality Scores to help you figure out where you could be upping your game to make business better. While payroll is an add-on, we partner with Gusto to give you the tools you need at a great price.

Both Xero and QBO have trackers that let you keep track of the time you spend on certain projects or tasks, individual users, and billable time. One difference is that currently, the QBO time tracker only allows for manual time entries. For a comprehensive, goes-with-you-anywhere time tracker, you’ll have to purchase the T-sheets add-on. On the other hand, Xero offers a mobile app for tracking time and projects. Comparing the pricing of Xero and QuickBooks Online, Xero is way cheaper than QBO, considering Xero supports unlimited users. However, they widely differ in how many features their cheapest online plans provide.

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. QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers. The software helps users to keep track of their finances, customers and vendors. Before we dig into the nitty-gritty, here’s a quick feature comparison https://intuit-payroll.org/ of ZipBooks vs QuickBooks Online vs Xero. While each cloud accounting software company offers a starter plan (our is even free!), this chart will compare the most popular plans and their product suites. QuickBooks Online is a cloud-based invoicing and accounting software for small businesses and their accountants, bookkeepers, or small business owners, with a fast-growing worldwide user base.

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. Beyond built-in integrations, QuickBooks offers more than 750 connections with other platforms — a quantity that impressed us.