QuickBooks vs Xero 2023: Which Software Is Better for You?

QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $200 per month. In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $70 per month. BooXkeeping is an outsourced bookkeeping service provider that offers a wide range of solutions to help businesses manage their finances more efficiently. As a Certified QuickBooks Solutions Partner and Xero Silver Partner, BooXkeeping has the expertise and experience to help businesses optimize their use of these powerful software tools. Both Quickbooks and Xero provide a range of reporting and analytics features that allow businesses to monitor their financial health and make informed decisions. Quickbooks offers more advanced reporting features, with over 65 report templates and customizable report options.

The problem is that you must have already paid a bill to the vendor and it has to have passed through the register for you to make it recurring. If you’re new to the software, you won’t be able to automate your monthly payments from the get-go like you can in Xero. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users.

Company Size

You can import data such as customers into Xero, but you’ll have to download the CSV file template in Xero in order to import the data correctly. With Xero inventory management (Figure B), users can track up to 4,000 finished items, inventory levels, set reorder points and monitor stock on hand. Although Xero’s inventory management isn’t as robust as that of QuickBooks, it’s still a powerful tool for managing business inventory. Not only do all four QuickBooks Online plans contain Sales Tax Management Features, but they also include tools for maximizing Tax Reductions and managing 1099 payments.

  • Xero holds the highest market share in Australia, New Zealand, and the UK.
  • Both have a customizable chart of accounts, and journal entry capabilities, and both allow you to import a chart of accounts.
  • The Online version has a monthly subscription charge, rather than a hefty upfront fee.
  • As a result, now that you’ve gone over the intricacies of these systems, let’s take a look at the most significant distinctions for Xero vs QuickBooks Online so you can decide which is best for you.

Here at Cloudwards.net, we want to help you pick the right accounting software for your business. In this article, we’re going to compare Xero and QuickBooks Online to see what stands out about two of the industry’s best providers. QuickBooks Online also gives you the option to have customer payments applied automatically once they’re deposited, or leave that option to the user. Xero’s invoice entry screen, seen above, is clean and uncluttered with easy look-up options available for most fields. Once the invoice is completed, you can send it via email with online bill payment options included in the email.

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These accounting tools offer a comprehensive range of features, from basic bookkeeping to project tracking and inventory management, to help your business thrive. The Xero mobile app is for Android and iOS devices is free when you sign up for a subscription. It offers easy access to Xero’s accounting tools on the move, including looking up contacts, sending invoices and reconciling bank transactions. 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. QuickBooks Online and QuickBooks Desktop are both robust accounting software options for small businesses, offering complete double-entry accounting and automated handling of closing entries. If you’re considering switching to QuickBooks Online or transitioning from QuickBooks Desktop, it’s essential to compare these two applications.

Gusto’s basic plan also has more payroll and HR features than QuickBooks’, including health benefits, workers’ compensation administration, commuter benefits and more. Customer support is an important factor to consider when shopping for the best payroll software or accounting tool. Companies with efficient customer support provide technical support, product training, an extensive knowledge base and help users troubleshoot and resolve issues in the shortest possible time. Intuit also offers a cloud-based payroll product called QuickBooks Online Payroll. While you won’t get a discount by bundling QuickBooks’ accounting and payroll software, it’s simpler to buy and pay for both plans at once if you plan to pay employees with QuickBooks Payroll. Finally, when comparing Xero vs QuickBooks, Xero’s Customer Service shines out.

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That is invaluable information for businesses that carry a significant amount of accounts receivable on their books. Under “accounts,” “purchases” and “new,” you’ll find “repeating bill.” Xero automatically saves bills you input as recurring and lets you select the recurrence options. If you realize that a bill will recur often after inputting and saving it, there’s a box to click to make it repeat. Invoicing isn’t complicated with either accounting service, and both Xero and QuickBooks Online have many advanced capabilities. QuickBooks Online offers more than Xero in customizing your experience and often lets you accomplish tasks in fewer steps. When you log in to Xero, it shows “invoices owed to you” at the top of the screen.

You’ll rarely be asking yourself how to use QuickBooks Online as they offer plenty of guidance throughout the application; users can click on the question mark anytime they need assistance. Xero and QuickBooks Online both offer a ton of features all designed for small business owners. QuickBooks Online, an offshoot of the popular QuickBooks Desktop application, is a good fit for small and growing businesses.

Overview of all products

Although it’s not the only accounting software we recommend, it’s a great choice for any small business. Its prices are competitive, bookkeeping for nonprofits especially if you use QuickBooks Self-Employed. Plus, as your business grows, upgrading to the next pricing tier is easy.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. For instance, QuickBooks and Xero are scored at 9.4 and 9.6, respectively, for general quality and performance. Similarly, QuickBooks and Xero have a user satisfaction rating of 96% and 97%, respectively, which reveals the general response they get from customers.

Unlimited users for a low cost

Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions. Each plan offers different features and benefits, so you can choose the plan that best fits your business needs. When comparing QuickBooks vs Xero, the latter is most certainly the more affordable option of the two. Xero’s dedication to innovation is reflected in its user-friendly interface and intuitive design. The software is easy to navigate and provides users with real-time access to their financial data, allowing them to make informed decisions about their business operations.