Xero v QuickBooks Online 2023 Feature Comparison

We liked that these reports are interactive, which makes it easier for us to measure key performance indicators (KPIs). We also found it easy to apply formulas in Xero to compare our budget and actuals side by side. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. 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. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach.

And you can also easily add inventory Items to quotes, invoices and purchase orders to make billing easy. If you upgrade to at least the Essentials plan from QuickBooks, you can enter employee time by client or project and automatically add that time to invoices. For more robust scheduling and PTO management, you’ll need to purchase the separate QuickBooks Time product in addition to the accounting software. Xero and QuickBooks Online are both powerful accounting software solutions for small businesses. However, when you compare features, QuickBooks Online inches ahead for its stronger feature set, ease of sharing with accountants and customer support.

There are no manual uploads needed, and you can set up secure, encrypted feeds from any number of different bank accounts. Yes, QuickBooks' accounting tools do come in a little higher in overall pricing, but the plan options are more flexible and offer more features than Xero’s definition of abc analysis plans. For those who like everything in neat compartments, Xero may be your best option. Instead of the “add what you need” process many other accounting software applications employ, Xero requires you to set up your business completely before you can start using the software.

Can you use Xero to track inventory?

Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically. Another notable difference is that QuickBooks Online lets you upload your file of transactions, so you aren’t required to connect your bank account. With Xero, you have to connect your account to reconcile your transactions. We thoroughly research and test the apps we include in our regular workflow for Client bookkeeping services. After deciding on criteria for evaluating the software and then researching the app itself, we tested the app, noting its strengths and weaknesses.

Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users. To get it, you'll just need to log in, visit Xero Central, and submit a query. You can then track its progress through a section called “My cases,” which details which specialist is working on it, the current status, and expected response time.

It’s a great way to know how much money you currently owe vendors and how much you can expect to owe in the future. QuickBooks offers more reports than Xero, plus you can create custom reports and tags. You’ll still be in a good position for reporting if you go with Xero, but QuickBooks is the superior choice if reporting is your priority. QuickBooks seamlessly integrates with Square, an excellent POS system for small businesses. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it.

In addition, because QuickBooks is so well known and widely used, it is easy to find a local bookkeeper fluent in QuickBooks accounting software. 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.

1. QuickBooks Online is a cloud-based invoicing and accounting software for small businesses and their accountants, bookkeepers, or small business owners, with a fast-growing worldwide user base.
2. Xero and QuickBooks are two of our best-rated accounting tools, but Wave is undoubtedly the safest bet for businesses watching the bottom line.
3. To make the decision a little easier, we're comparing Xero and QuickBooks Online, side by side based on features, pricing, ease of use, and more.
4. Perhaps you've read our accounting software reviews but remain confused about which of these two, popular accounting tools is right for you.

Take a closer look at other factors of the software such as intuitiveness, adaptability, scalability, and pricing plans. A mobile app for both iOS and Android devices is available in Xero, offering the ability to handle common tasks such as receipt management, contact management, bank reconciliation, and invoice creation. Yes, both have a fixed asset manager that allows you to track fixed assets and calculate depreciation. Fixed asset accounting is part of all Xero’s plans, while it’s offered only in the most expensive plan of QuickBooks Online—Advanced. The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units.

QuickBooks’ Pricing

Reports can be customized with different columns, formulas, text blocks, or drag-and-drop accounts. Overall, the cheaper cost of Xero's time tracking abilities is likely to make it the more appealing option, even if QuickBooks includes more features. Some businesses may rely on those features, however, particularly if they opt for top-down oversight that requires greater control. This is because QuickBooks offers an add-on specifically for time tracking, starting at $20 per month (plus $8 per user), while Xero bundles time tracking with its main service. Xero also lets you send quotes and estimates that can quickly pull up data on contacts, inventory, and pricing. Additional automation abilities let you select inventory items from a preset list, quickly duplicate a previous invoice, or set up automatic invoices for repeat orders.

QuickBooks Online, the market-leading accounting software from Intuit, offers “Smarter business tools for the world’s hardest workers”. Its standard features include creating invoices from the mobile app and customizing invoices with your company logo and branding. Like most platforms, you can also use QuickBooks to view invoice payment status and remind clients to pay their bills.

Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support. With a research score of 5/5 for software attributes and 5/5 for its accounts receivable features, the complimentary software gives Quickbooks and Xero a run for their money too.

Plus, as your business grows, upgrading to the next pricing tier is easy. Every service plan includes all the tools your business needs to oversee its finances from the desktop or via the powerful QuickBooks mobile app. Accounting software is essential for more than keeping your books current. It’s also vital for tracking cash flow, invoicing clients and paying vendors.

Xero vs. QuickBooks Online: Ease of use

Xero uses AI and machine learning, including HubDoc, to automate workflows, available in all of its pricing plans. Xero serves two million users worldwide, with leading cloud accounting market https://accountingcoaching.online/ share in New Zealand, Australia, and the U.K. QuickBooks API is also available for app developers to build integrations between their systems and connect customer data with REST-based API.

To make the decision a little easier, we're comparing Xero and QuickBooks Online, side by side based on features, pricing, ease of use, and more. In evaluating pricing, we considered the billing cycle (monthly or annual) and number of users. With Xero, you’ll need the paid Expenses add-on to track mileage and the paid Projects add-on to track time. With Xero, currency is set at the transaction level—so a single contact can support transactions in multiple currencies.

This pared-down menu makes it easy for new users to find their way around the application without too much trouble. 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 offer very similar features and functionality along with summary dashboards to measure business health.

QuickBooks Online Pricing

Core offers the basics, while Premium adds same-day direct deposit, role-based access, and auto time tracking. Elite also adds tax penalty protection, and a dedicated pro to help set up and troubleshoot. 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. While both systems allow you to stay on top of your accounting, track expenses, generate invoices, run reports and more, there are some key differences between the two.