Depending on several factors, including the size of your business and the type of business you run, either QuickBooks or Xero will be your best choice. Xero is a better solution for large and growing companies that don’t want a cap on the number of users needing access to the software. On the other hand, Quickbooks is a favorite small business accounting software for companies that need to be able to outsource their bookkeeping to a hired accountant. Compared to QuickBooks, Xero’s time tracking features are easy to use. You can simply download the free Xero Projects app on iOS and Android, using it to record time and costs, as well as seamlessly and automatically feed the data into invoices and reports. Premium includes scheduling for jobs and shifts, real-time reporting, custom alerts, and time-off management.

Step 4: Post-conversion checklist for QuickBooks Online

QuickBooks and Xero include many of the same features, though QuickBooks is more feature-rich overall. That said, Xero’s bill pay tools outperform those in QuickBooks at lower prices than QuickBooks’ two highest-end pricing packages. QuickBooks comes with free access to a searchable knowledge base, guides, videos, articles and the QuickBooks Assistant chatbot.

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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 measures keep your data encrypted preferred synonyms and antonyms 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.

QuickBooks vs. Xero: Pricing

Xero allows companies to set up sales tax rates to calculate sales tax automatically. Users can also generate sales tax summaries, edit tax rates whenever needed, and prepare tax reports for return. Xero also has a built-in timer to track time invested in a particular task.

Another reason QuickBooks Online stands out is its ability to calculate sales tax rates automatically based on the customer address, which is something Xero can’t do. Hence, it’s no surprise that QuickBooks Online is our overall best invoicing accounting software. 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 $90-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.

Some of the features we looked into include the ability to create and send invoices, accept online payments, enter and track bills, and view reports on the go. Xero and QuickBooks are two the of most popular accounting software solutions financial leverage ratios to measure business solvency 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.

1. The desktop version is installed on a computer, while the online version is accessed through a web browser.
2. Sales tax items are converted too, though the default sales tax codes assigned to customers in Xero will not be converted.
3. Xero’s time-tracking feature is included in its project management tool.
4. It includes everything in Simple Start, plus bill management tools and a time tracking ability for adding up billable hours.
5. Use the accounting app to keep track of due and overdue invoices and whether they’ve been paid.
6. QuickBooks interface is comparatively easier to navigate as its menu panel consists of all the key components, making it easier for anyone to find the preferred section.

QuickBooks Online, the market-leading accounting software from Intuit, offers “Smarter business tools for the world’s hardest workers”. Despite not offering unlimited invoices and bills in its base plan, Xero accounting software is a more scalable solution than QuickBooks in the number of users it supports. Xero supports unlimited users with all their subscription plans–in contrast, QuickBooks allows only up to 40 users with its highest-tiered plan. Additionally, if more software apps and integrations are critical to the scalability of your business, then Xero is a winner in this category as well.

A standout Xero reporting feature is the ability to mark the reports you run most often as favorites. This way, you can access these reports near-instantly upon logging into Xero. Plus, no matter what, profitability reporting and data are available right from the Xero dashboard. Xero’s reporting tools impressed us overall, even though other platforms include a wider variety of reports. The platform’s reporting suite is among the most powerful we encountered while reviewing accounting software. On top of that, we were disappointed that Xero’s expense-tracking tools are only available with its costliest pricing package.

QuickBooks allows users to tag things while working to track projects, locations, events, and more. Users can run custom reports related to the tags to get an instant picture through the insights. Payments are due by the end of your monthly billing period based on the date you purchased your subscription. Sales tax items are converted too, though the default sales tax codes assigned to customers in Xero will not be converted. Tracking categories and options in Xero will become Classes and Locations in QuickBooks Online.

Now, just like Xero, QuickBooks Online, allows you to record a fixed asset purchase, track the asset, and calculate depreciation. However, we want to emphasize that Xero offers fixed asset accounting in all its plans, making it an affordable QuickBooks alternative for fixed asset management. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills. Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit. With your accounting software and data stored online in the cloud, you can access your up-to-date accounts anywhere there’s an internet connection.

Customer payments are remitted to the merchant’s designated bank account. QuickBooks is an online accounting software that helps users track receipts, bookkeeping vs accounting bank transactions, and income. It is popular among small to medium-sized businesses and offers cloud-based and on-premises applications.

Xero is not an alternative to project management software, but it has some useful project management features for companies involved in various projects. It offers tools for time tracking, project planning, budgeting, expense monitoring, quoting, and invoicing. Xero’s invoicing capabilities allow you to create and customize an invoice for clients and then accept credit card, debit card or bank transfer payments within the invoice itself.

We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances. Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero.

It syncs with QuickBooks Payroll and allows employees to enter their time manually or through the QuickBooks Workforce app. Xero also shows when a client views the invoice and alerts businesses when the invoice is paid. Users can set the software to send multiple reminders to the clients for due and overdue invoices at their preferred intervals. They can include an invoice PDF link and a button to online invoice in the reminder email. QuickBooks simplifies finance management by allowing users to organize receipts and track mileage easily using its mobile application.

Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. More than 750 app integrations, including live, in-house bookkeeping. Entry-level plan limits bills and invoices to five and 20 per month, respectively. Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop.

Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; however, there is a learning curve. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. The Xero Accounting app is included as part of your Xero subscription and free to download. Get an instant view of cash in and out to help you monitor the numbers and the performance of your small business. Keep your small business books and bookkeeping up to date so you have a current view of your finances. Accounting online with Xero will protect your data through multiple layers of security, such as encryption.

When looking for the best invoicing software besides Xero and QuickBooks, the best options will vary based on the business size. Freelancers may find Invoice2go and Bonsai to have user-friendly features, while Zoho Invoice and FreshBooks offer a comprehensive feature set suitable for small to medium-sized businesses. QuickBooks supports mileage tracking with its mobile app, which enables automatic GPS tracking from mobile phone locations. Users can also add trips manually and categorize trips as businesses for tax deductions. QuickBooks allows companies to create and send estimates on different products and services seamlessly.

While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business. First-time QuickBooks customers can choose to explore QuickBooks without committing to a plan by signing up for a 30-day free trial. You can also skip the free trial in favor of locking in 50% off for your first three months — but you can’t choose both. Both QuickBooks and Xero let you set up automated data tracking and report generation, but QuickBooks has more granular options, making it faster to compare reports against historical data. You’ll still be able to accomplish everything you need with both, but it’ll be a little faster with QuickBooks.

Video training courses, a blog, and a community forum are also available. Both services do offer an app marketplace, for both in-house mobile apps and integrations or extensions offered by third-party services. Xero offers more integrations overall, but both are very comprehensive. Both accounting softwares are easy to navigate, allowing you to find your required feature from a main dashboard with a sidebar. QuickBooks’ sidebar is vertical and on the left, while Xero’s is horizontal across the top, both deliver about the same user experience, and user satisfaction is high for both. 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.

QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep. Depending on the plan you select, QuickBooks Online’s monthly prices run from $30 for the Simple Start plan to $200 for the Advanced plan. While it’s not part of our case study, we evaluated Xero vs QuickBooks Online in terms of assisted bookkeeping. We consider this a draw since each program is designed for specific business needs. QuickBooks Online and Xero both have a large collection of integrated apps, which should be enough to cover your business automation needs.