Table of Contents
QuickBooks and Xero are the most popular accounting software solutions for businesses looking to keep track of finances. While the two offer similar features, such as financial reports, tax management, integrated Payroll, file storage, and inventory, they are not without their differences. We compared Xero vs. QuickBooks to the key features, Customer Service, customer service, and reviews to help decide which is right for your business.
Xero vs. QuickBooks: Briefly
QuickBooks provides online and desktop versions and is better for businesses that outsource their accounting work to a bookkeeper or accountant. However, QuickBooks limits to 40 users for its top-tiered plan, and even then, few packages require every user to pay for their account, whereas Xero supports unlimited users. As a result, Xero is better for businesses that keep a team of accountants or bookkeepers in-house.
QuickBooks intuitive interface can help businesses with no accounting background, whereas the Xero interface is more compatible with accountants and bookkeepers. In addition, QuickBooks is better for tracking inventory, as it has built-in inventory tracking features. In contrast, inventory management is not Xero's core function.
Xero is an ideal option for businesses that want to track project profitability because Xero lets you see how much each project costs you in real time & compare that to your estimated profits. Xero is also an ideal option for businesses that are expanding globally, as it offers multicurrency support.
Xero accounting is an online software that helps small businesses manage their finances. Xero offers a variety of features, like invoicing, tracking expenses, & creating financial reports. In addition, Xero integrates with other business applications, like payroll and inventory management systems. This integration makes it a versatile application for small businesses that need to streamline operations.
Xero is also updated automatically, so companies always have the latest features & security patches. Overall, Xero is an efficient and cost-effective application for small businesses to manage their finance.
Xero starts at $12 per month for up to 20 invoices, 05 bills, receipt capture, bank account reconciliation, and short-term cash flow snapshot. For $34 a month, get unlimited invoices and bills. Its $ 65-per-month plan includes project tracking, multiple currencies, employee expense claims, and in-depth analytics. Starting at $39 a month, add Payroll to any package using Gusto.
QuickBooks is a popular accounting & Bookkeeping software for small businesses, solopreneurs, freelancers, and users to track finances, customers, & vendors. In addition, it allows users to create invoices & reports.
QuickBooks is available on desktop and online. QuickBooks desktop version is installed on a computer or PC, while the online version works on a web browser. QuickBooks Online includes all the features of QuickBooks desktop, with additional features like more app integrations and a fully functional mobile app with more attractive pricing. The Online plans start at $15 per month, whereas the Desktop plans must be paid annually and start at $349.99 per year.
For an additional $50, add a Bookkeeping setup with a Live Bookkeeper. It also offers Payroll, but this service is an additional fee starting at $35 per month.
Xero and QuickBooks have similar pricing, except for QuickBooks Desktop Version. Xero doesn't have a desktop version. The QuickBooks Desktop version starts at $349 per year, goes up to $804 for the first year, and renews at $1,340 per year.
With both companies, capture and organize receipts. Xero offers through Hubdoc so that you can access the documents online. QuickBooks offers receipt & document organization with its mobile app and online version.
Send invoices, Track mileage, and a snapshot of your business cash flow with Xero and QuickBooks. While Xero's lowest-tiered package allows you to send & approve up to 20 invoices, partner applications that initiate transactions can automatically count to your limit. Its higher packages have no limits for invoices.
Another critical difference between the two software is the maximum number of users they allow. Xero has no limit to users who can access data, whereas QuickBooks limits users to 40 with its Enterprise package. Its lower package requires users to pay for their package.
For example, when you buy the Pro Plus QuickBooks Desktop package, you can have a maximum of 3 concurrent users, but each must pay for their account (at $349.99 each per year). On the other hand, the QuickBooks Online version allows 25 users at no additional charges, provided you're paying for the Advanced package.
Xero and QuickBooks are both excellent accounting software options for small businesses. They offer a wide range of tools, an easy-to-use interface, and competitive pricing. However, QuickBooks is best for companies that require desktop software for accounting and outsource their accounting needs to a bookkeeper or accountant. At the same time, Xero is a better fit for small businesses that require online accounting software and unlimited users.