If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available. There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface. Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants. If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative.

• QuickBooks Online came out on top for features, ease of use, customer support but Xero wins in pricing.
• QuickBooks lets you see all of your customers and what they owe you.
• Meanwhile, a vertical sidebar can take you to more in-depth dashboards dedicated to topics including Workers, Taxes, and Reports.

Furthermore, you need an Established plan to scan receipts with your phone. On other hand, Time Tracking is included in every QuickBooks Online Subscription, starting with Essentials. Finally, QuickBooks Online distinguishes itself from Xero by providing time Tracking Capabilities. Although Xero offers Time Tracking, it is only offered as part of their Projects feature set, which is only available with the Established Plan. 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.

Customer Service and Support

Although Xero’s inventory management isn’t as robust as that of QuickBooks, it’s still a powerful tool for managing business inventory. As a QuickBooks ProAdvisor, Mark has extensive knowledge of QuickBooks products, allowing him to create valuable content that educates businesses on maximizing the benefits of the software. For instance, If you have complex bookkeeping needs and require a QuickBooks-specific virtual bookkeeping service, then choose QuickBooks Live. However, if you want a more scalable solution with the option to hire additional services like payroll and tax filing, then Xero is the more suitable choice. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights.

In this space, Xero and QuickBooks have similar functionalities, too. Xero offers email and phone support, and we’ve never had any problem getting in touch with them. Plus, we almost never have to contact them for support because Xero for ecommerce just works. QuickBooks has historically been hard to reach, keeping customers on hold for hours and not solving the problems at hand. Your business probably has a long list of contacts like customers and suppliers. Contact management systems help you keep track of their information.

• Compared to QuickBooks, Xero’s time tracking features are easy to use.
• QuickBooks products, including QuickBooks Online and QuickBooks Desktop, currently have a 76% market share in the US.
• It helps users quickly figure out the correct VAT amounts for their transactions, ensuring accurate tax calculations.
• If you are in need of accounting functionality, Xero and Quickbooks are good options.
• 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.

It can significantly enhance efficiency, ease of use, and your bottom line. As you can see, while both Xero and QuickBooks offer robust features, they also differ in many aspects. You need to start your search with something to find out about available options and form your opinion on what might potentially fit your bill. Learn more about our expertise in SaaS and startup accounting on our website and our YouTube channel. We’ve heard from several developers who try to integrate with QuickBooks Online, and they’re just pulling their hair out.

Table of Contents

The software helps users to keep track of their finances, customers and vendors. 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. Xero and QuickBooks Online are both powerful accounting software solutions for small businesses. However, when you compare features, QuickBooks Online inches ahead for its stronger feature set, ease of sharing with accountants and customer support. This takes into account customer management, revenue recognition, invoice management, and collections.

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. QuickBooks Online, the market-leading accounting software from Intuit, offers “Smarter business tools for the world’s hardest workers”. Plans start at $13 per month for up to 20 invoices, five bills, bank account reconciliation, receipt capture and short-term cash flow snapshots. Its $70-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. With its intuitive interface and startup-friendly pricing, Xero is known as a platform for small businesses.

Xero vs QuickBooks Online: Bank Feeds

The software, for instance, automatically matched bank transactions with transactions in your ledger daily. It also guides you through creating new transactions in Xero when they are missing. Xero also has a big portfolio of integrations which get a lot of positive feedback.

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. While Xero’s $13 Early plan is far cheaper than QuickBooks’ $30 Simple Start plan, it’s also very limited due to the caps on invoices and billing. A better comparison is the $60 QuickBooks Essentials plan (plus the $45 Core or $80 Premium payroll plans) vs. the $37 Xero Growing plan (paired with the $40 or $80 Gusto plan).

Integrations

Additionally, the platform’s aesthetic appeal cannot be overlooked—it looks better, providing a user-friendly interface that enhances the overall experience for users. The journey with accounting software doesn’t end at implementation; ongoing support and training are vital for sustained success. Assess the quality of customer support and the availability of training resources offered by the software provider (you might find out whether accounting and the construction of the governable person users are satisfied with the support QuickBooks offers, etc.). Responsive support and comprehensive training contribute significantly to a successful implementation, ensuring that your team can navigate the software with confidence. QuickBooks Online goes beyond just showing data but helps businesses make smart decisions. The platform provides detailed financial reports, offering a clear view of a company’s financial health.

You can also add custom invoicing details to your contact record, such as whether the customer is exempt from sales tax. A major selling point of Xero is that you can have unlimited users on your account. The QuickBooks Online app promises to help you log miles, create invoices, maintain finances and cash flow, and track your profit and loss reports.

Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support. 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. Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software.

Final word: the divergence and convergence of Xero and QuickBooks

Xero’s VAT calculator is a handy tool that makes calculating Value Added Tax (VAT) easier for businesses. It helps users quickly figure out the correct VAT amounts for their transactions, ensuring accurate tax calculations. With the Xero VAT calculator, you don’t need to worry about applying the right VAT rates—it does it for you.