Both easily manage key accounting functions like transaction and expense accounting and reconciliation. Are you looking for an easy and affordable way to create, send and manage invoices? Invoicing is done in seconds and can either be done in the browser or using Xero’s mobile app for iOS and Android.

• While it is moderately priced, it can be cost-effective considering the value it can provide to your business.
• For tax support, Xero integrates with the international tax software Avalara.
• You can only accept payments via card or direct debit with Xero, boxing out clients who prefer newer technologies.
• Gusto’s basic plan also has more payroll and HR features than QuickBooks’, including health benefits, workers’ compensation administration, commuter benefits and more.
• Video training courses, a blog, and a community forum are also available.

Video training courses, a blog, and a community forum are also available. Neither QuickBooks or Xero offers a permanent free plan, but if that’s what you need, we have a guide to the best free accounting software. Xero’s security amended tax return 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.

Its products are intended to help businesses of all sizes, from small and midsize businesses to corporations and enterprises. The cloud-based QuickBooks Online lets business owners manage accounting, accept online payments, manage and pay bills, and much more. FreshBooks can be a good option for freelancers and contractors looking for an affordable, simple accounting software. There’s time tracking in all plans and phone support is available from 8 a.m. The first two plan tiers put a limit on billable clients, but not on invoices.

Inventory management

The platform utilizes advanced algorithms to seamlessly match transactions between bank statements and accounting records, ensuring real-time accuracy. Discrepancies are flagged for user attention, minimizing the risk of oversight and errors. Xero’s commitment to user-friendliness is evident from the moment users log in. The platform boasts an intuitively designed interface, allowing even those without extensive accounting backgrounds to navigate seamlessly. This emphasis on accessibility aligns with Xero’s mission to empower businesses, regardless of their scale or financial expertise.

• Other mutual features include receipt photo upload, mobile app mileage tracking, expense reporting and adding billable expenses to client invoices.
• This way, it can be a significant factor when deciding which option to choose.
• In case you want to transfer your data from Xero or Quickbooks, you can use Hevo to pull data into your data warehouse.
• Xero is more affordable and scalable than QuickBooks since all subscriptions have unlimited users.
• Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically.

Its standard features include creating invoices from the mobile app and customizing invoices with your company logo and branding. Like most platforms, you can also use QuickBooks to view invoice payment status and remind clients to pay their bills. Other standard features include one-click payments, recurring payment invoices, adding billable hours to invoices and converting estimates into invoices. It caters to small and medium-sized businesses, startups, and more.

Fixed Asset Management: Xero Wins

If you’re in the middle of it, you’ve undoubtedly come across Xero Accounting and QuickBooks Online, two of the most popular Accounting Solutions for businesses. In many aspects, Xero and QuickBooks Online are comparable in that they are both Web-Based Accounting Software Platforms with extensive feature sets, flexibility, and ease of use. QuickBooks also offers an add-on for QuickBooks Commerce, a platform to manage e-commerce listings and inventory. Xero doesn’t have built-in payroll functionality, but you have the option to add on Payroll with Gusto for an additional $39 per month on any plan. Xero also offers slightly more refined functionality, including the ability to sync bank transactions for automatic bank reconciliation. The main difference in choosing between Xero and QuickBooks is geography.

Main Differences Between Xero and QuickBooks

Choose QuickBooks if you need exceptionally robust expense management within your accounting software. QuickBooks has long been the gold standard among small business accounting platforms. Although it’s not the only accounting software we recommend, it’s a great choice for any small business. Its prices are competitive, especially if you use QuickBooks Self-Employed.

For businesses that rely on invoicing, generating and sending accurate invoices is a critical feature of accounting software. QuickBooks Advanced plan users can access 24/7 phone and chat customer service. Other plans still have online chat and phone options, but the hours are more limited. Both solutions also allow you to tag different categories of expenses.

The Benefits of QuickBooks Online

Real-world experiences provide invaluable insights into the practical use and performance of accounting software. Platforms like Capterra, G2, or the accounting software provider’s website often feature user reviews that offer a candid perspective on the software’s strengths and potential drawbacks. The platform may present a learning curve for new users, particularly those transitioning from different accounting systems. While the interface is intuitive, it may require some adjustment, especially if you got used to another platform.

With QuickBooks, you can connect any bank account to the platform provided that the bank is supported under the Open Banking regulations. All three plans have optional add-ons for an extra cost, such as Payroll from an additional £5 a month. The Online version has a monthly subscription charge, rather than a hefty upfront fee.

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. Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month. If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost.

For QuickBooks Online, optional one-time bookkeeping setup is $50.00. You can also use QuickBooks to schedule payments in advance, including partial bill payments. We were impressed with this flexibility — you can make appropriate payments for your current cash flow. We liked that Xero’s app store neatly organizes and categorizes these apps.