Xero vs. QuickBooks software

The search for the right business accounting software can be extensive—deciding what features you need, what your budget looks like, and of course—comparing the different options on the market.

If you’re in the midst of this process, you’ve probably come across two of the most popular accounting solutions for small businesses: Xero accounting and QuickBooks Online. In fact, Xero and QuickBooks Online are similar in many ways—both are web-based accounting software platforms known for their robust feature sets, flexibility, and ease of use.

Let us compare the two software to help you decide which is better and more suited to your business.

PRICING (USD)

Xero:

  • Starter – $20 / month
  • Standard – $30 / month
  • Premium – $40 / month

QuickBooks:

  • Simple Start – $15 / month
  • Essentials – $22 / month
  • Plus – $30 / month

 

FEATURES

Xero:

  • Bank connections and reconciliation
  • Invoicing, quotes, and bills
  • Unlimited users
  • Inventory tracking and management
  • Purchase orders
  • Sales tax management
  • Dashboard and reporting
  • Contacts, smart lists, and file storage
  • Fixed asset management
  • Accept online payments with payment processor integration
  • Free mobile app
  • Payroll partnership with Gusto
  • Integrate with over 700 third-party platforms
  • 24/7 online customer support

QuickBooks:

  • Income and expense tracking
  • Invoicing and estimates
  • Ability to accept payments
  • Basic reporting
  • Bank account connection and reconciliation
  • Tax organization tools
  • Receipt capture and organization
  • Access for your accountant
  • Free mobile app
  • Integration with other QuickBooks apps and third-party platforms
  • Phone-based customer support

 

PROS AND CONS

Xero:

Pros:

  • Bank Feeds: Makes banking and reconciliation easy and quick
  • Clean interface
  • Includes cloud computation which means there is easy integration with third-party apps
  • Easy access to the same files as your clients
  • Constantly upgrading with automatic updates
  • Built-in payroll with an automatic superannuation payments
  • Relatively easy to use and has great customer support and services

Cons:

  • Can be very slow if your company is running online or your company makes a high volume of sales through PayPal
  • It does not support ETP’s. otherwise known as exchange-traded products
  • No built-in “Debton Chasing”, which is something a business needs in order to ensure payments are made on time

QuickBooks:

Pros:

  • Easy to use interface and navigation
  • Easy invoice customization
  • Sync with online banking and credit card accounts
  • Good accounting reports
  • Integration with third-party applications
  • Data is always backed up

Cons:

  • Specifically designed for small businesses, which could be a ”pro” for some and a “con” for others, depending on what is needed for your company
  • Caters to companies with very limited accounting needs, and therefore, doesn’t offer many accounting processes used by professionals
  • Has had several problems with online security: if you use the online version of QuickBooks, you run the risk of exposing important financial information to internet hackers and the general public
  • Limited in the number of products you can list for inventory purposes

 

While this is just a general comparison, which is better also depends on factors such as the size of your company, the work you do, etc. Every organization has different objectives and hence has different factors that help decide which software is more suitable for them.

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