Xero also stands out for its strong security, which is pretty much unmatched in the industry. Xero also has one of the strongest contact management features in the game. FreshBooks is one such option that has gained popularity in recent years. It’s designed specifically for small businesses and offers invoicing, time tracking and expense management. Xero Established is a comprehensive plan for businesses managing multiple projects and tracking in-depth financials. It includes everything in small business accounting solutions Growing, plus multi-currency accounting, project costing and tracking, expense claims, and in-depth analytics.
Xero vs. QuickBooks Online: Pricing
- Both Xero and QuickBooks Online have troubles when it comes to customer service.
- Xero and QuickBooks Online are both powerful accounting software solutions for small businesses.
- Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan.
- Add-on third-party AP automation software can be integrated with both Xero and QuickBooks Online accounting software or ERP systems.
This makes it a versatile tool for small businesses that need to streamline their operations. QuickBooks has earned the trust of millions of small businesses due to its robust features and user-friendly design. The platform offers a comprehensive range of accounting tools, from invoicing and expense tracking to payroll and inventory management. Its intuitive interface and extensive customer support make it accessible to business owners with varying levels of accounting knowledge. Ironically, we don’t recommend this plan to freelancers due to its lack of tools, even though we do recommend QuickBooks as the best accounting software for the self-employed. To compare QuickBooks vs. Xero accounting, we consulted product documentation and user reviews.
Plans & pricing
You can import data such as customers into Xero, but you’ll have to download the CSV file template in Xero in order to import the data correctly. For those who like everything in neat compartments, Xero may be your best option. Instead of the “add what you need” process many other accounting software applications employ, Xero requires you to set up your business completely before you can start using the software. Xero’s invoice entry screen, seen above, is clean and uncluttered with easy look-up options available for most fields. Once the invoice is completed, you can send it via email with online bill payment options included in the email. Once payment is received, Xero source documents overview and types of accounting documents will automatically apply the payment if paid online, or you can process the payment during your regular bank reconciliation process.
Xero vs QuickBooks: Which Is Right For Your Business in 2024?
With QuickBooks, you’ll get expert help from real people through phone and live chat six days a week. Our specialists are here to support you with every part of your QuickBooks journey, from the initial switch to onboarding. QuickBooks’ user-friendly interface makes navigating your finances a breeze, even if you’re not an accounting expert. The layout and simple design ensure that you can find what you need quickly and efficiently. Unbiased can match you with a qualified accountant to ensure you receive expert guidance tailored to your business’s financial requirements.
The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance. While Xero and QuickBooks Online have a lot in common (i.e., advanced features and numerous integrations), there are a few features that separate the two. Xero comes out on top for its support of unlimited users at no additional cost — something that is pretty much unheard of in the accounting software world. The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $35 per month while the only current Desktop version, Enterprise, must be paid annually and start at $1,922 per year.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. If you can’t justify the $99-per-month QuickBooks Online Plus plan, you won’t get inventory management, because QuickBooks Online’s lower-tier plans don’t come with it. 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. If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit.
We considered features such as invoicing, billing, payments, expense tracking, mileage tracking, project and time tracking and inventory management. We also ordinary annuity formula weighed factors such as pricing, user experience, customer service and integrations. Neither Xero nor QuickBooks Online is lacking when it comes to features. Both have basic accounting features, including invoices, estimates, bank reconciliation, expense tracking, and journal entries. With both programs, advanced features like time tracking and inventory management are available on select plans. QuickBooks is the leading accounting software for small businesses, designed to simplify financial management and empower growth.
Another option for QuickBooks Online users is finding an independent QuickBooks ProAdvisor for assisted bookkeeping. You can search the online directory to locate financial professionals who specialize in working with your industry. Xero does offer Xero Advisors, but the QuickBooks ProAdvisor network is much larger. QuickBooks Online came out on top for several features, ease of use, and customer support among others, but Xero wins in pricing.