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 $30 per month, whereas the Desktop plans must be paid annually and start at $492 per year. It offers the same features as the Simple Start plan, plus project profitability tracking and inventory tracking.
- Every service plan includes all the tools your business needs to oversee its finances from the desktop or via the powerful QuickBooks mobile app.
- That said, Xero’s bill pay tools outperform those in QuickBooks at lower prices than QuickBooks’ two highest-end pricing packages.
- For example, when you purchase the Pro Plus Desktop plan, you can have up to three concurrent users but each of those users must pay for their own account (at $349.99 each per year).
- We also recommend Xero if you’re seeking project profitability data alongside superior bill pay and expense management features.
QuickBooks Online is rated 4.2 out of 5 on Capterra by 3520 users, while Xero has an average of 4.3 from 1880 users. With no draft functionality, you’ll need all your information at hand when recording and posting transactions in QBO.
In our eyes, QuickBooks’ expense-tracking features are among the best around. Perhaps our favorite Xero bill pay feature is that you can use the platform to schedule batch payments for one or many vendors. This is the easiest tool we encountered in any accounting software platform for making timely payments in one click. We were delighted that Xero makes it so 1 what is a contra asset account the balance of contra asset simple to keep up on your accounts payable and avoid late payment fees. Beyond built-in integrations, QuickBooks offers more than 750 connections with other platforms — a quantity that impressed us. Some of QuickBooks’ most popular app integrations include the payment app BILL, the line of credit solution Fundbox, and the expense management platform Expensify.
You can also automatically record and match customer payments, accept tips via invoices, and split estimates into several invoices. We like that the latter feature, which isn’t common in accounting software, boosts cash flow for businesses operating on estimates. Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances. While the two both offer similar features, such as tax management, financial reports, integrated payroll, inventory and file storage, the two are not without their differences. Forbes Advisor compared Xero vs. QuickBooks when it comes to the key features, pricing, customer service and reviews to help you decide which is right for your business. The desktop version is installed on a computer, while the online version is accessed through a web browser.
QuickBooks Online's accounting software has a looser setup structure, allowing you to enter the bare minimum and add the rest as you go along. While Xero might be a good application to start with, growing businesses will appreciate the scalability offered by QuickBooks Online. The Xero accounting interface is clean and uncluttered, and new users have access to a demo company where they can manipulate data without worrying about entering or deleting important information. Xero's security measures keep your data encrypted and stored in multiple locations online, keeping it safe yet backed up. All plans support two-step authentication for all users, and the company guarantees it'll keep your data private. You can add your logo to your invoice templates, and change the color to fit your business's branding.
Xero vs QuickBooks: Top Features Comparison
This makes the tool as great for payment as for understanding your cash outflows. Plus, you get bill pay tools no matter which package you choose, although you can only pay five bills per month with the Early plan. You can cancel anytime, you’ll get 24/7 support during your trial, and your prices don’t change based on whether you pursue the trial.
- FreshBooks is one such option that has gained popularity in recent years.
- QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers.
- Overall, the cheaper cost of Xero's time tracking abilities is likely to make it the more appealing option, even if QuickBooks includes more features.
- With QuickBooks, you can even take photos of your physical receipts, which the software automatically matches to existing expenses.
QuickBooks Online (QBO) is cloud-based accounting software that streamlines many of the repetitive tasks involved in managing bills, invoices, and business projects. 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. Its data-entry screens are more minimalist than those of QuickBooks Online, and its invoice and billing entries require less in the way of data entry. Xero’s main entry screen uses a menu bar at the top of the screen for access to system functions.
Scalability and suitability for different business sizes
A cloud accounting tool is one of the most powerful contributors to the day-to-day running of a company. With a system like Xero or QuickBooks Online, you can enjoy a crystal-clear view of your accounting, maximize tax deductions, and even stay on top of projects and time tracking. Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop. The Desktop plan offered by QuickBooks starts at $349.99 per year, goes up to $804 for your first year and renews at $1,340 per year.
Building Better Businesses
All of these things can cause extreme frustration, and you'll need the assistance of product support to solve these problems. User preference can play a role in which style you prefer, but generally, the more self-explanatory a central navigation screen is, the easier it is for new users to find their way around. To make the decision a little easier, we're comparing Xero and QuickBooks Online, side by side based on features, pricing, ease of use, and more. QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep.
Invoicing and Payments
We were especially impressed with Xero’s built-in Gusto payroll integration. When we tested Xero, this seamless integration powered the entirely automatic updating of our accounting records when we ran payroll through Gusto. We also liked Xero’s built-in integrations with the payment processor Stripe, the CRM HubSpot, the email marketing platform Mailchimp and the e-commerce platform Shopify. Both platforms ultimately ranked among the most affordable we encountered, and we appreciate how transparent both are in their pricing. However, QuickBooks is our winner because you get much more with its two highest-priced tiers than with Xero’s highest-priced tier. You might pay more for QuickBooks, but the platform’s value per dollar justifies its higher costs.
Perhaps you've read our accounting software reviews but remain confused about which of these two, popular accounting tools is right for you. Both services will allow you to modify your main dashboard to display the stats that matter most to you, but QuickBooks offers a little more flexibility. It has all the features of Growing, plus support for multi-currency claims and expense claims, as well as a function for tracking time and costs on a per-project basis. Both QuickBooks and Xero offer tax preparation features, and that feature is just one reason why our researchers gave both services a perfect 5/5 for financial reporting. FreshBooks is another accounting platform with invoicing features that rival and even outdo QuickBooks.
Xero is considered a top QuickBooks alternative because of its comparable core features and budget-friendly pricing. While both are cloud-accounting leaders, the main difference between QuickBooks and Xero lies in their unique strengths and limitations. With Xero, you can save transactions as drafts, and then finish creating or editing them later. Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. 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.
An important though often overlooked component of any software product is how easy it is to use. Plus, Xero staffers can call people back to discuss their cases over the phone, giving you that phone support you need, albeit in a roundabout way. Both services are available on all the most common devices and browsers.