Although Xero has a few more integrations, QuickBooks stands out with strong and dependable options tailored to SMBs. Wee Chun Ang is a seasoned professional with expertise in business expansion, global workforce solutions, accounting, and strategic marketing, backed by a strong foundation in financial markets. He began his career managing high-value FX transactions at Affin Moneybrokers, a subsidiary of Affin Group, and KAF Astley & Pearce, a subsidiary of KAF Investment Bank. During his tenure, he played a pivotal role in setting up FX options desks, achieving significant milestones, including a 300% increase in desk revenue.
Xero VS QuickBooks Online: Comparison
Are you torn between QuickBooks and Xero for your business accounting needs? These two powerhouses dominate the accounting software market, each with its own strengths. Even though Xero offers a tempting $9/month plan, the reality is that it’s too restrictive for anything but the smallest side hustles that need less than five invoices and bills per month. If you want access to their Gusto full-service payroll (available across all 50 states for US customers), pricing starts at $39/month base + $6/month per person. Despite their accolades, neither Xero nor QuickBooks are beginner-friendly platforms.
- You can add billable expenses to the invoices you send clients via mobile or desktop.
- Xero’s most distinctive feature, when paralleled with QuickBooks, is its invoice customization.
- QuickBooks Enterprise Desktop offers built-in security features to ensure data safety.
- It also has a big community and ProAdvisors who give one-on-one help.
Third-party app integrations
QuickBooks is mostly opted by online sellers and accountants for providing detailed, scalable accounting, advanced reporting, stronger tax compliance, and inventory management. Yes, both Xero and QuickBooks allow data migration between platforms. You can export and import key quickbooks vs xero data such as contacts, invoices, and reports. However, some data may need to be transferred manually or with third-party tools. It’s best to consult an accounting software expert to ensure a smooth transition. Both Xero and QuickBooks offer essential accounting tools like invoicing, reporting, bank reconciliation, and tax management—but differ in UX, automation, and integration depth.
For businesses needing extensive features, QuickBooks is the superior choice. 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.
With a user-friendly interface and a comprehensive suite of tools, QuickBooks streamlines tasks like invoicing, expense tracking, and reporting, giving you a clear picture of your financial health. From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs. Xero is widely recognized for its user-friendly and intuitive interface, making it easier for accounting novices to get started. Its clean dashboard and helpful prompts streamline core tasks like invoicing, bank reconciliation, and expense tracking. On the other hand, QuickBooks provides a slightly steeper learning curve due to its broader range of features and customization options.
QuickBooks is best for small businesses that want easy-to-use software with tons of features. It’s also a great choice if you’re looking for a highly customizable experience. Seamless connection with your financial institution is a non-negotiable feature for modern accounting software. However, it’s essential to consider what features are included at each price point and any potential hidden costs.
- Beyond built-in integrations, QuickBooks offers more than 750 connections with other platforms — a quantity that impressed us.
- When it comes to integrations, QuickBooks Online and Xero are neck-and-neck, with each boasting more integrations than most accounting software options.
- QuickBooks and Xero offer some of the best invoicing and quoting features in the industry.
- When it comes to managing company finances, few platforms are better than Xero and QuickBooks.
- Easy to share information with your accountant and to find QuickBooks experts and online resources if needed.
Overview of Xero and QuickBooks
Learn more about how QuickBooks compares to the free accounting software Wave. All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track your income and expenses. More than 750 app integrations, including live, in-house bookkeeping. When it comes to costs, there are significant differences that will likely sway SMBs one way or the other. The table below shows how much different plans cost for Xero and QuickBooks and any additional fees you’ll encounter.
The HubSpot Customer Platform
Xero offers solid reporting capabilities, but QuickBooks’ depth and flexibility make it the superior choice for businesses needing extensive financial analysis. If you’re a freelancer or small business primarily focusing on invoicing and tracking expenses, FreshBooks is another great alternative. It also offers API support and its App Store lets you filter results by category and industry, making it easier for users to locate useful integrations.
Can you invite your accountant to your QuickBooks account?
You can customize them in many ways, which helps if you want detailed insights. Xero also has reports, but they are simpler and best for small business use. QuickBooks gives you 24/7 customer support through live chat and phone. QuickBooks also has a big knowledge base, helpful video tutorials, and step-by-step guides to answer common questions. However, freelancers or small businesses seeking comprehensive features without a hefty price tag attached may prefer the Essentials plan from QuickBooks over Xero.
Here are the key features of Xero and QuickBooks that I think will have the most impact on how you manage your SMB’s finances. The company cut down at least ten hours every week that they used to spend on manual data entry. This change saved more than $400 monthly and improved overall operational efficiency. By providing feedback on how we can improve, you can earn gift cards and get early access to new features. If you don’t have the time to devote to learning the software, QuickBooks Online may be the better fit.
Pricing Plans
But when something goes wrong, like duplicate transactions, bank feed errors, or incorrectly categorized items, the automation may not always flag it. As some Reddit users put it, Xero can sometimes declare you “fully reconciled” even when small mismatches exist. QuickBooks limits users sharply at every tier, forcing some businesses to upgrade sooner than they’d like just to give more people access.
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The Shopify app store also has many options to connect and sync store data to Xero, including the Xero & QuickBooks Smart Sync, A2X Sync, and Xero Bridge apps. If you need advanced features like payroll and inventory, QuickBooks wins. If you want simple pricing, unlimited users, and easier day-to-day use, Xero’s better. After all the comparisons, features, pricing tiers, and debates, it’s given that both Xero and QuickBooks are excellent pieces of accounting and bookkeeping software.
Xero connects well with global tools, especially outside the US, and has excellent integrations with platforms like Gusto for payroll and Stripe for payments. You’ll see terms like “classes,” “tags,” and detailed charts of accounts from the start. You need to send invoices, reconcile your bank, and make sure bills are paid.