QuickBooks Online outclasses Xero in this category as it offers more useful features that aid in setting up the software. Xero took a hit for its lack of assisted onboarding support and new company wizard, but it does offer the ability to import beginning balances—a feature that QuickBooks Online lacks. You might prefer QuickBooks for invoicing and A/R management, and it earned a perfect mark in this category. It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image.
FreshBooks is one such option that has gained popularity in recent years. It’s designed specifically for small businesses and offers invoicing, time tracking and expense management. If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available. There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface.
- Seamlessly connect QuickBooks to your favorite apps and tools, creating a unified hub for your business operations.
- By providing feedback on how we can improve, you can earn gift cards and get early access to new features.
- NerdWallet independently reviews accounting software products before determining our top picks.
- Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
Project Accounting: Xero Wins
One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees. The software is also updated automatically, so businesses always have the latest features and security patches. Overall, Xero is an efficient and cost-effective way for small businesses to manage finances. QuickBooks goes beyond accounting with 750+ integrated apps, streamlining everything from payroll to customer relationships. This eliminates the need for multiple platforms, reducing time and effort while empowering smarter business decisions.
How To Choose Payroll Software For Your Small Business
Both have basic accounting features, including invoices, estimates, bank reconciliation, expense tracking, and journal entries. With both programs, advanced capital expenditures features like time tracking and inventory management are available on select plans. Accounting software is essential for more than keeping your books current. It’s also vital for tracking cash flow, invoicing clients and paying vendors. QuickBooks Online is the winner in this category because of its many features that Xero lacks. This includes the ability to accept payments, view reports, and assign expenses to customers or projects.
Customer Service
It takes just a few clicks to run through various accounting functions and get your expenses in order. In our eyes, QuickBooks’ expense-tracking features are among the best around. Perhaps our favorite Xero bill pay feature is that you can use the platform to schedule batch payments for one or many vendors. This is the easiest tool we encountered in any accounting software platform for making timely payments in one click.
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. QuickBooks and Xero are both popular accounting software options for small businesses, but which one is right for you? Here, we break down the key differences in features, benefits, and pricing to help you choose the platform that best suits your business needs and budget. Unloop is the first and only accounting firm exclusively servicing bench accounting api ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting.
Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. However, the layout and navigation may not be as the difference between a trial balance and balance sheet intuitive for some users, especially those who are new to accounting software. Xero Growing is designed for growing businesses, offering everything in Early, plus bill management tools, additional invoicing, and bulk reconciling transactions. Around the world, people use Xero to manage their business finances and maintain their financial health. Thanks to Xero’s comprehensive features and seamless integrations with other business apps, you can customize Xero to your specific needs – no matter the industry.
As the leading business accounting software platform, QuickBooks is unsurprisingly a standout when it comes to integrations. The platform offers high-quality built-in integrations with many leading business software vendors. For example, QuickBooks integrates with Square, Gusto, PayPal, eBay, Shopify and Etsy.
We consider this a draw, and the ratings presented above are simply reflections of the average scores of Xero and QuickBooks Online on review sites. We looked into the positive and negative feedback of both software, and we found that they received a fair share of praise and complaints. Easy to share information with your accountant and to find QuickBooks experts and online resources if needed. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes. Xero utilizes an App Marketplace with over 1,000 apps to extend its core functionality.