The difference between Xero vs. QuickBooks Online so that you can determine which is better for your needs. Xero is also known in Australia and the UK. Xero is cloud-based and offers a simplified, intuitive user interface. Users with limited or no accounting knowledge can use Xero’s straightforward approach to managing inventory, invoicing, paying bills, converting currency, & running the payroll, among many other features. QuickBooks is accounting software that provides accountants, small business owners, self-employed people, and freelancers with tools to manage clients, vendors, customers, finances, and inventory. The majority of its users are American business owners, accountants, and employees. QuickBooks Online is the cloud-based version of the accounting software, while traditional QuickBooks is designed for desktop computers.
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Xero vs. QuickBooks online has significant capabilities to offer small businesses as accounting software. First, however, it’s noted that when comparing QuickBooks Online vs. Xero, there are certain areas in which it’s particularly difficult to say that one platform offers greater benefits than the other. These platforms do have their differences. Ultimately, comparing Xero accounting vs. QuickBooks Online, QuickBooks stands out in terms of their plan options, time tracking, and tax tools. Xero, on the other hand, stands out in terms of its user allowances, integration options, and customer support.
Some Common Characteristics Xero and QuickBooks online
Xero and QuickBooks both enable financial and accounting professionals to maintain and monitor their financial activity and history. Accounting professionals can input a range of financial transactions, such as a $12,000 payment for an office renovation, a $500 check to an outside contractor or freelancer the company works with, and even a $10 purchase of office supplies. By using these software programs, financial and accounting professionals are able to paint a clearer picture of the finances. The software can show them how much their company is owed, how much cash they currently have on hand, and in what areas they’re spending the most. The software can also help them prepare reports and documents, such as invoices or account receivable (AR) and account payable (AP) reports, necessary to conduct the financial activity. Since Xero and QuickBooks are both used for accounting, they do have many common features, including the following:
- Online accounting
- Banking synchronization
- Invoicing for vendors and customers
- Financial reporting
- At-a-glance view of cash flow
- Bank reconciliation
- Multiple currencies
- Document sharing
- Billing management
- Countless integrations and add-ons to improve functionality
- Outstanding balance display
- Mobile friendly
- Free trials
QuickBooks Online vs. Xero: The Benefits of QuickBooks Online
As we mentioned, when comparing QuickBooks Online vs. Xero, QuickBooks Online wins out in terms of their plan options, tax tools, and support, as well as their time tracking.
- Plan Options – With four plan options, each with increasing features designed to accommodate businesses of all shapes and sizes, QuickBooks Online certainly stands out in this way compared to Xero. Although Xero offers three different plans, the first plan extremely limits the number of invoices, bills, and transactions you can utilize. Plus, if your business wants functionality beyond these limitations, you have to options for the Growing plan, which is more than 3x as expensive as the Early plan.
- Tax Tools – Another of the most notable ways in which this QuickBooks solution stands out when comparing Xero accounting vs. QuickBooks Online is with their tax tools. Although Xero includes sales tax software with all of their plans, they do not offer the same level of overall tax support as QuickBooks Online.
- Time Tracking – Finally, the time tracking capabilities that QuickBooks Online offers sets this solution apart from Xero. Although Xero does provide time tracking functionality, they only do so within their Projects feature set which is only available with the highest level plan, Established.
Xero vs. QuickBooks Online: The Benefits of Xero
There are many reasons why Xero has quickly become one of the most popular accounting platforms and a top QuickBooks alternative. This being said, however, when comparing Xero vs. QuickBooks online directly, Xero wins out in terms of their user allowances, integration options, and customer support.
- Users – One of the biggest benefits of Xero, compared to QuickBooks Online as well as other accounting platforms, is that regardless of which of their three plans you choose, you have the ability to add an unlimited number of users to your account. As a small business, you may want to give accounting software access to a bookkeeper, accountant, tax advisor, or simply to members of your staff, and therefore, the ability to add as many users you want is particularly useful. Without a doubt, the ability to add and customize user profiles allows you to collaborate within your organization much more seamlessly and effectively.
- Integration Options – Another way that Xero stands out versus QuickBooks Online is with its integration options. Although there’s no doubt that QuickBooks offers substantial integration opportunities, including with some of their own branded tools, it’s hard to compare to Xero’s over 700 options.
Xero vs. QuickBooks Online: Support
Both Xero and QuickBooks offer accounting and financial professionals support in multiple ways, including the following:
- Live support
- Support tickets
Xero vs. QuickBooks Online: The Bottom Line
In the end, when you select Xero or QuickBooks Online, you’ll be using a top accounting software platform that will allow you to efficiently manage and streamline your accounting processes. They said, if you’re looking for the ultimate winner between QuickBooks Online vs. Xero, it’s difficult to say one solution is objectively better than the other. Instead, the Xero vs. QB Online winner ultimately depends on your business what features you need, what your budget looks like, and what capabilities are most important to you. As we’ve mentioned, the similarities between Xero and QuickBooks Online are their overall functionality, reasonable pricing, usability, mobile access, and more mean these platforms have the ability to serve a variety of small businesses well. It will be up to you, therefore, to decide how their differences will affect your business and which option will work best for you.