Xero vs QuickBooks Compared: Is QBO or Xero Accounting Best?

Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. All plans include 24/7 live chat support; phone support is available 5 a.m. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. Whether you are a small business or a startup and weighing up Xero vs. QuickBooks, we think it’s important for you to know whether either of the platforms can integrate with Katana.

In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users. QuickBooks Online’s customer support is better than Xero’s since you can interact with an agent through a phone identifying incremental cost in hmo call. You can’t initiate a call, but you can submit a ticket and wait for an agent to call you. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

Xero vs. QuickBooks: Online Accounting Showdown

Gusto’s basic plan also has more payroll and HR features than QuickBooks’, including health benefits, workers’ compensation administration, commuter benefits and more. Both QuickBooks and Xero support inventory management (Figure C). While reviews for both programs are mainly positive, there are a number of serious issues that multiple users cited in their complaints. For Xero, the unintuitive UI was mentioned numerous times, and some users warned that beginners with no prior accounting experience may struggle with the clunky interface. Several users also complained about Xero removing features (such as built-in payroll) yet continuing to increase monthly subscription costs. QuickBooks Online also gives you the option to have customer payments applied automatically once they’re deposited, or leave that option to the user.

• The cheapest plan, Early, lets you send 20 invoices and enter five bills.
• Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances.
• 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.
• Xero and QuickBooks Online are both powerful accounting software solutions for small businesses.
• QuickBooks Capital gives you a way to get a hassle-free small business loan.

Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit. Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization with its mobile app as well as the online version.

What Is Double-Entry Accounting?

What we have done is develop a QuickBooks add-on that creates a live, real-time link between your accounting data and custom Google Sheets spreadsheet reports. So you always have the right information, right where you need it. With over 5.3 million users worldwide, QuickBooks has the biggest market share of this kind of software. However, in a much shorter time, Xero has amassed over 3 million users, so they are certainly heading into serious competitor territory. Both Xero and QuickBooks offer opportunities to invite accountants and other non core users to access your business account, so they both score well on the collaboration front.

You can access all your accounting documents directly through Katana. QuickBooks vs. Xero — in this article, we explore these two accounting software giants, comparing them against each other and seeing which is best for manufacturers. Xero works well for some small businesses, startups, and e-commerce businesses, but if you plan to scale, it’s not ideal. Xero’s support appears to be the most responsive via phone and email support.

Transaction and Expense Tracking

For businesses that prioritize real-time data and inventory management, Xero may be the preferred choice. Customer support is an important factor to consider when shopping for the best payroll software or accounting tool. Companies with efficient customer support provide technical support, product training, an extensive knowledge base and help users troubleshoot and resolve issues in the shortest possible time. There are a handful of differences between the features of QuickBooks Online and Xero.

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. Wave offers the cheapest managed payroll solution for $35 monthly base fee + $4 per active employee and $4 per independent contractor. They’ll automatically transfer tax payments and file the paperwork with your state tax office and the IRS. However, it is only available in California, Florida, New York, Texas, Illinois, and Washington. This is $2 more than QuickBooks’ self-service option, and you have to pay for and file the paperwork yourself.

The Top 8 Open Source Payroll Software Choices for 2023

QuickBooks Online lets you perform bank reconciliation without importing your bank activity. User interface, to some extent, will always be a matter of personal preference. But if we look at the stats, we have to give the win to Xero, thanks to its shallow learning curve.

• All three plans have optional add-ons for an extra cost, such as Payroll from an additional £5 a month.
• QuickBooks Advanced plan users can access 24/7 phone and chat customer service.
• Both QuickBooks and Xero support inventory management (Figure C).
• Help is accessible from any data-entry screen, and a demo company is available for those who want to enter practice transactions without worrying about messing up their own data.

Most high street banks support international payments but they’re often expensive, slow and with limited features and currencies that you can send and receive. 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. Its extensive features, seamless integration capabilities, and industry reputation make it the go-to choice for many businesses. You can read more on the pros and cons of Quickbooks online in one of our articles. Xero, on the other hand, excels in its cloud-based approach, promoting collaboration and accessibility.

Meanwhile, Xero’s mobile app might be preferable if you often need to record bills and bill payments on the go. When you evaluate and compare Xero to QuickBooks Online for your small business, refer to our guide and find as much other information as you can for these cloud accounting software solutions. Only your company can decide if Xero is better than QuickBooks Online or QuickBooks Online is better than Xero, based on your specific business needs and checklist. Moreover, Xero has a powerful report tracking feature that allows users to track financial data across multiple dimensions, such as by location, department, or project. This feature is especially useful for businesses that need to keep a close eye on the performance of different segments, enabling them to make informed decisions for growth and expansion.

QuickBooks bills itself as ‘smart, simply accounting software – with no commitment’⁴. It’s particularly good at helping businesses to streamline repetitive tasks, and manage accounting processes from just their smartphone. First launched in 2001³, QuickBooks Online is a cloud-based accounting service from Intuit with a monthly subscription plan. This all-in-one accounting software is particularly popular with startups and younger business owners, and is known for its clean, uncluttered interface. Both accounting software solutions have their strengths and are widely used by businesses of all sizes. Let’s dive into the key takeaways to help you make an informed decision.

INVOICING

If you need to send many invoices or make a lot of customizations, you may find it challenging to use. Filter your list to see customers, vendors, or only active or archived contacts. 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. Access all Xero features for 30 days, then decide which plan best suits your business. Xero’s cloud-based software is a QuickBooks alternative that means business – whenever, wherever you are. Both Xero and QuickBooks Online can be used and synced with online payments processing transactions from different online payment processors.