16 Mar Xero vs QuickBooks Online: Which is Better?
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. Our only QuickBooks bill-paying disappointment was that you can’t access the feature via the Simple Start package. If the most affordable QuickBooks solution is your priority, you forgo the ability to pay bills through your software. 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.
If you need comprehensive bank reconciliation, class and location tracking, good customer support, and easy access to local bookkeepers, then QuickBooks Online wins. QuickBooks Online is an accounting software tool developed and marketed by Intuit. Its products are intended to help businesses of all sizes, from small and midsize businesses to corporations and enterprises.
Pricing and Plans
The platform’s genesis was rooted in a commitment to simplifying financial management for businesses of all sizes. What started as a desktop-based solution evolved into a comprehensive suite of tools catering to freelancers, small enterprises, and large corporations. While desktop is one of QuickBooks’s available options, it is safe to say that QuickBooks Online is the brand’s flagship and the most widely used accounting solution in the US.
- Xero and QuickBooks are both great accounting software options for small businesses.
- Xero’s financial reporting features start with its interactive reports and budgets, updated in real time throughout the week.
- For this category, we rank Xero first due to its free 24/7 online customer support across all its plans.
- The main apps also garner similar ratings on the Apple and Google app stores.
- I have learned never to underestimate the importance of live product support, particularly when it comes to managing my money.
Once the invoice is completed, you can send it via email with online bill payment options included in the email. Once payment is received, Xero will automatically apply the payment if paid online, or you can process the payment during your regular bank reconciliation process. QuickBooks is Intuit’s general accounting software, while QuickBooks Online (QBO) is specifically the cloud-based service. For QBO, you pay a monthly subscription rather than an upfront fee, and you get all the patches and software updates from Intuit.
Like its competitors, QuickBooks delivers comprehensive double-entry accounting and reporting features. Additionally, the software comes equipped with diverse tools and invoicing capabilities that have proven valuable to business owners. These attributes combine to make QuickBooks a reliable and versatile choice that suits the needs of many small businesses. QuickBooks Online is an impressive financial management platform that offers a harmonious blend of sophistication and user-friendliness. Its intuitive interface allows users to easily navigate through its impressive feature set. QuickBooks’ design is logical and easy to understand, making it accessible to everyone, from seasoned accountants to small business owners, regardless of their accounting expertise.
Who is QuickBooks Online for?
It’s time for the quickfire round to really compare the details of Xero vs. QuickBooks. This comparison should help you determine whether Xero or QuickBooks is better how tax shields work for small businesses in 2021 for small businesses and, crucially, which is best suited to your requirements. This guide will help you understand its types, importance, tips and tricks, and more.
Payroll Processing
Intuit, a U.S.-based company that also makes TurboTax, owns QuickBooks. This takes into account customer management, revenue recognition, invoice management, and collections. 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.
Xero vs. QuickBooks Online: Integration with other software
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.
When you combine the power and advantages of our software with the accounting abilities of Xero or QuickBooks it’s a match made in heaven. Xero is the newer product, having made its way onto the market in 2006. In a relatively short time, it has established itself as a top accounting tool, and its great user reviews mean it has an enviable reputation.
Xero vs QuickBooks: Pricing
The menus and features are set up logically, so you can easily find your way around, saving you time and making the software simple to work with. Xero’s interface is adaptable, meaning it caters to users with different levels of expertise. They also listen to user feedback and keep updating the interface to stay modern and helpful for businesses in a changing financial world. Xero is an excellent solution for daily accounting activities like tracking and paying bills. The platform makes it extraordinarily easy to review and pay outstanding bills.
Both Xero and QuickBooks Online are optimized for small to mid-sized businesses, so large enterprises with more complex requirements may struggle to tick all of their boxes. Xero has automatic bank feeds, which means that all you have to do is make the initial connection between the software and your bank. After that, the data will be updated automatically every business day. There are no manual uploads needed, and you can set up secure, encrypted feeds from any number of different bank accounts. If you pay VAT, work with suppliers or are a growing business, you can take your pick from Essentials (up to 3 users) or Plus (up to 5 users). The features list grows with the monthly subscription cost, and you can bolt-on extra services such as Payroll for a small extra monthly fee.