QuickBooks Online vs Xero 2024 Comparison
While Xero’s entry-level plan seems like the better deal when compared to QuickBooks, limitations on invoices and bills make it suitable for very small businesses or freelancers. Xero also doesn’t have some built-in features that you’ll find with QuickBooks, including payroll (although Xero integrates with Gusto) or payment processing. For the full feature set, you’ll need Xero’s top plan (Established).
Choose QuickBooks Online If…
This means that Xero Early may be as cheap as $6.50 per month when 50% off, while QuickBooks Simple Start would cost just $9 a month, provided it is offering the same deal. Meanwhile, a vertical sidebar can take you what is a lookback period form 941 and form 944 to more in-depth dashboards dedicated to topics including Workers, Taxes, and Reports. QuickBooks also offers a number of tailored reports, including QuickBooks reports for nonprofits, which let organizations track their donations and finances with one tool. Still, if your business relies heavily on other software services, Xero is a better bet then QuickBooks for making them all work together and ensuring everything is easily accessible. FreshBooks charges $17 per month and QuickBooks charges $30 per month).
Invoicing
We researched both tools extensively to help you choose the right accounting software for your business. In this article, we compare their core features, pricing and pros and cons to help you decide which one is the right accounting software for your company. If you can’t justify the $99-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. All of Xero’s plans come with inventory management so business owners can track what’s in stock and which products are selling.
- We also have dedicated articles and solutions online from our Customer Experience team to support your transition.
- QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing.
- Support is limited, so users are left reading help articles rather than getting a live person to help.
- We’d recommend checking the total features offered by the QuickBooks Essentials and Xero Growing plans against your business’s needs.
- The software helps users to keep track of their finances, customers and vendors.
Who Uses This Software?
Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones. The software makes it easy to pay bills, claim expenses, accept payments, track projects, manage contracts, store files and more. The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing.
Xero’s financial reporting features start with its interactive reports and budgets, updated in real time throughout the week. You can set specific KPIs, and can jump to detailed transactions when you need more info. Reports can be customized with different columns, formulas, text blocks, or drag-and-drop accounts.
You can add your logo to your invoice templates, and change the color to fit your business’s branding. And while the Advanced tier of QuickBooks offers 24/7 support through live chat, phone lines, and email, their other tiers only offer a live chat option. QuickBooks supports six custom invoice templates, and lets you track the status of the invoice with read receipts. If needed, you can easily send customers reminders, and can match any payments received with the correct invoice for efficient bookkeeping.
Regardless of what route you choose, make sure to do your research and get hands-on with free trials to find the accounting software that’s right for your business. QuickBooks Online has over 750 integrations encompassing everything from customer management and payment processing to tax preparation and lending. Since Xero no longer has built-in payroll, its tax support is limited only to sales tax. Through QBO, you can prepare and print W-2s for your employees and 1099-MISCs for your contractors. QuickBooks Live Tax also gives you access to expert tax advice, maximum tax deductions, and tax filing through TurboTax (pay only when you file).
App Marketplace
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. After a 30-day trial period, Xero will bill a monthly charge of $13 per month for the Early plan, $37 per month for the Growing plan and $70 per month for the Established plan. For free invoicing platforms, consider Zoho Invoice, Square Invoices or PayPal Invoicing, although these platforms provide fewer capabilities. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry.