Xero vs QuickBooks Online: Whats Best for You?

We evaluated Xero vs QuickBooks based on ease of use, pricing, and how well each performed against the ideal features we’re seeking—including project accounting, inventory management, and mobile accounting. 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. 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. Add-on third-party AP automation software can be integrated with both Xero and QuickBooks Online accounting software or ERP systems.

The complete business guide to importing goods from the EU to the UK, including customs declarations, import duties and more. Hopefully after reading this guide, you should have a better idea of what both Xero and QuickBooks have to offer. The good news is that both platforms let you cancel at short to no notice, so you can test each out before making up your mind.

About Xero

Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants. If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative. It has comparable invoicing features, but lacks an audit trail and doesn’t integrate with third-party apps. Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions. Xero and QuickBooks Online stand as robust accounting software options suitable for businesses. However, in terms of features, QuickBooks Online holds a slight advantage due to its more robust ecosystem of attachable apps.

• Note that fixed asset accounting isn’t part of our case study, so there are no scores.
• For businesses reliant on project-based revenue streams, QuickBooks’ job costing feature becomes an invaluable tool for precise project budgeting and financial success.
• You may never need to call support, but it’s nice to know it’s an option.
• 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.
• 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.

In this guide, we will explore the key differences and declare our respective winners in each category. Once you are ready to proceed, open a QBO account with a current discounted plan. Export all lists/transactions data from Xero to XLS/CSV, then utilize a 3rd party importer tool. Xero uses a very structured setup process, which is great for those who like to have everything in place prior to starting work.

The Key Features of Xero Accounting Software

On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. Xero is the go-to choice for rapidly growing businesses and startups because it scales well with them. Meanwhile, solopreneurs and small business owners will find QuickBooks Online more suitable. If you have a bigger business, QuickBooks offers enterprise-level solutions.

A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments. 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.

Xero Reviews

It’s tricky to declare that one software program is inherently superior to another when comparing Xero and Quickbooks. The decision on the Xero VS. Quickbooks Online topic ultimately comes down to your company, your required functionality, your budget, and the features that matter most to you. Let’s further discuss these software features to ensure the software’s suitability to your business needs. The essential guide on how to do international market research for a startup, including methods, costs and more. Every business needs a good system for its accounts, from the smallest startup to the biggest multinational − not to mention freelancers. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

• Through Wise, you can reduce the hefty fees most banks charge on international transactions – it’s simply one less thing to worry about and you even can earn a return on the money you hold.
• The software must have enough reports that can be generated with a few clicks.
• Unfortunately, many don’t have positive experiences with QuickBooks’ customer support.
• Intuit also offers a cloud-based payroll product called QuickBooks Online Payroll.

That means careful consideration, planning, and a deep understanding of the unique needs of your business. Some best practices for choosing accounting software might also help, providing a roadmap for businesses to make informed decisions. Customer payments are remitted to the merchant’s designated bank account. how to start an online bookkeeping business QuickBooks offers integrations with 400 plus apps and software tools to increase the functionality of your software plan. E-commerce businesses can easily connect their accounting software with payment platforms like PayPal and Shopify. Xero vastly outperforms QuickBooks in its fixed asset management tools.

Company Size

QuickBooks Live doesn’t offer tax filing or payroll services, unlike Bookkeeper360. Prices for QuickBooks Live Bookkeeping scale with the monthly expenses of your business, which means higher costs for businesses with higher expenses. We break down the prices in our QuickBooks Live Bookkeeping review’s pricing section. For instance, If you have complex bookkeeping needs and require a QuickBooks-specific virtual bookkeeping service, then choose QuickBooks Live. However, if you want a more scalable solution with the option to hire additional services like payroll and tax filing, then Xero is the more suitable choice.