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Bookkeeping

Xero vs QuickBooks Online: Features Comparison, Pros, Cons

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. However, Xero includes inventory management with every plan, including its $13 per month Early plan. Intuit also offers a cloud-based payroll product called QuickBooks Online Payroll.

QBO also has accountant-specific features they can use, like the ability to undo reconciliations, reclassify transactions, and write off invoices. If your business works with an accountant, you’ll want to loop them into your online accounting software account. The cheapest plan, Early, lets you send 20 invoices and enter five bills.

QuickBooks vs. Xero Recap

Both services will allow you to modify your main dashboard to display the stats that matter most to you, but QuickBooks offers a little more flexibility. Xero’s security measures keep your data encrypted and stored in multiple locations online, keeping it safe yet backed up. All plans support two-step authentication for all users, and the company guarantees it’ll keep your data private. Meanwhile, a vertical sidebar can take you 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. Both platforms offer payroll capabilities, but they differ in how they’re implemented.

  • These attributes combine to make QuickBooks a reliable and versatile choice that suits the needs of many small businesses.
  • So, deciding which platform is the best fit for your company could be tough.
  • You get it with the established plan, which is cheaper at $65 per month than QBO’s plus plan.

Businesses with inventory items should choose accounting software that can track inventory costs, manage COGS, and monitor inventory units. It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image. On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. Unfortunately, many don’t have positive experiences with QuickBooks’ customer support. One complained that they are often transferred to different departments when they contact QuickBooks. We believe the quality of customer service you’ll receive varies a lot based on the agent.

Bill Pay

Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; however, there is a learning curve. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users.

Project Management

A multi-currency account that integrates with the major accounting software is one of the most wanted features for global businesses. Most high street banks support international payments but they’re often expensive, slow and with limited features and currencies that you can send and receive. QuickBooks offers a main dashboard that can be customized with a series of tile-like graphs or lists, which lets you see real-time KPIs at a glance. Compared to QuickBooks, Xero’s time tracking features are easy to use. You can simply download the free Xero Projects app on iOS and Android, using it to record time and costs, as well as seamlessly and automatically feed the data into invoices and reports.

Xero vs. QuickBooks: For SaaS & Startups

They both have an app, and pricing based on a monthly subscription model. QuickBooks has an online portal that users with common problems can check to resolve any issues without involving customer support. It includes articles and videos, grouped by the type of QuickBooks product, and further broken down into categories such as ‘Account Management,’ ‘Taxes,’ and ‘Sales and Customers,’ among others. Video training courses, a blog, and a community forum are also available. Both QuickBooks and Xero let you set up automated data tracking and report generation, but QuickBooks has more granular options, making it faster to compare reports against historical data. You’ll still be able to accomplish everything you need with both, but it’ll be a little faster with QuickBooks.

You may use QuickBooks Tax Categories, create your own, and automatically support your Expenses as you prepare to file your Business Taxes with these features. You can also arrange your Quarterly Taxes and exchange or export pertinent Tax Data with your Accountant. Finally, when comparing Xero vs QuickBooks, Xero’s Customer Service shines out. Although both platforms have extensive self-service materials on their websites, Xero additionally offers Free 24/7 Online Assistance to all of its users, regardless of plan level or timezone. Furthermore, Xero does not outsource customer service; all reps are Xero employees. Xero and QuickBooks both offer monthly subscriptions with pricing plans in the same ballpark, and each offers an add-on option for payroll.

Additionally, with QuickBooks Plus and Advanced, you can create custom reports. Across all pricing plans, you can also create custom tags for your reports. QuickBooks offers more invoicing tools and client payment options than Xero. While you can certainly use Xero to check most debt to asset ratio of your invoicing boxes, you get more flexibility and options with QuickBooks. FreshBooks is another accounting platform with invoicing features that rival and even outdo QuickBooks. Check out our FreshBooks review if invoicing tools are a top priority for your business.

The platform may present a learning curve for new users, particularly those transitioning from different accounting systems. While the interface is intuitive, it may require some adjustment, especially if you got used to another platform. Moreover, one might need time to learn all the features and how to apply them to a particular business needs. QuickBooks’ inventory management feature is a boon for businesses immersed in physical product transactions. The platform enables businesses to accurately track and optimize stock levels, providing real-time inventory status.

COMPANY

The Established plan also supports a multi-currency function, which converts 160 different foreign currencies into your business’s local currency. All plans include 24/7 live chat support; phone support is available 5 a.m. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. Our partners cannot pay us to guarantee favorable reviews of their products or services. Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop.