It’s a reliable companion for businesses that use various business tools, ensuring financial management remains at the core of a thriving ecosystem. QuickBooks Online and Xero are both powerful accounting tools with long lists of pros and cons. The best solution for you depends mainly on your business and preferences. But because QBO has more users (especially in the US), your accountant is more likely to be familiar with the tools and setup. Although the software solutions can be relied on to manage your accounting, you as the end-user are ultimately responsible. Refreshing your basic accounting knowledge will ensure you understand what’s happening in the tools and help you get the most from both.
- You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you.
- The decision between industry leaders like Xero and QuickBooks requires a thorough understanding of features, benefits, and potential drawbacks.
- Its intuitive interface allows users to easily navigate through its impressive feature set.
- QuickBooks Online and Xero are both powerful accounting tools with long lists of pros and cons.
While it is moderately priced, it can be cost-effective considering the value it can provide to your business. A satisfied Xero user shared that the program is the most user-friendly accounting software on the market. Xero can be easy to use after you become familiar with it, but we believe QuickBooks Online is generally more intuitive and easier to set up.
QuickBooks vs. Xero
With GoCardless, customers can pay them by using an ACH debit (bank transfer). Users can choose other third-party add-on apps to integrate with Xero for payment processing. Quickbooks is a more scalable solution than Xero when it comes to bills and monthly invoices, which are both unlimited in all plans. Xero’s Early plan gives you 5 bills and 20 invoices and only offers unlimited invoices and bills starting in their second product tier. QuickBooks is a great bookkeeping solution for freelancers, small to medium businesses, and companies that want a full product suite.
This level of expansion can make up for Xero’s limited options for reporting and customization. Both applications are easy to use, and users can easily see results from the dashboard. Katelyn is a Junior Research Analyst at SoftwarePundit, where she conducts in-depth analyses of technology markets & products and writes software-related content. She graduated summa cum laude with degrees in English and Psychology. Her main areas of interest are content creation, user experience, and search engine optimization. Xero give you the same options, but also includes exporting to Google Sheets.
Xero vs. QuickBooks
There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Either way, having your accounting system online allows for quicker and easier communication. Financial decisions and discussions happen sooner because information is shared faster due to the ease of accessibility. All three products — QuickBooks desktop, QuickBooks Online, and Xero — have similar functions, as follows. QuickBooks Online has always felt, to me, like a downsized version of QuickBooks desktop.
Though in Xero it may be possible to use the tracking function to create those groups and add expenses to them. Explore our list of accounting software solutions or request a free consultation with one of our software experts. When reviewing a product, users are asked to assess the product’s overall quality, which includes assigning specific ratings for ease of use, value for money, customer support, and functionality. Xero has automatic bank feeds, which means that all you have to do is make the initial connection between the software and your bank. After that, the data will be updated automatically every business day. There are no manual uploads needed, and you can set up secure, encrypted feeds from any number of different bank accounts.
Why QuickBooks Online wins
Enter a few test entries to try each product — not a full month’s transactions, just enter a few test entries. After doing this in each product, you should have an understanding of each one, to make an informed choice. If you do your bookkeeping, your accountant can now access your information in real time. If you outsource your bookkeeping to an accountant, both of you can see the same information at the same time. QuickBooks’ rich feature set, while being a strength, can also be overwhelming for smaller businesses or those with simple accounting needs.
At the end of the day, the choice of QuickBooks vs Xero ultimately boils down to specific business needs and preferences. So, you can always check them in action to see whether they fit your bill befor making any commitment. The journey with accounting software doesn’t end at implementation; ongoing support and training are vital for sustained success. Assess the fedex small business center quality of customer support and the availability of training resources offered by the software provider (you might find out whether users are satisfied with the support QuickBooks offers, etc.). Responsive support and comprehensive training contribute significantly to a successful implementation, ensuring that your team can navigate the software with confidence.
Fixed Asset and Inventory Management
On top of the shared features listed above, both QuickBooks and Xero have inventory management tools. However, QuickBooks only offers it with its higher-tiered plans, while it comes standard with all Xero plans. QuickBooks Online provides this feature starting in their Essentials plan, and Xero offers it in their Established plan. Additionally, both software provide online support, but QuickBooks excels by offering phone customer support as well. Standard phone support is available Monday through Friday, 9 AM to 8 PM EST, and 24/7 with the QuickBooks Online Advanced plan. QuickBooks Online, the market-leading accounting software from Intuit, offers “Smarter business tools for the world’s hardest workers”.