Accounting software has become an essential tool for organizations to help them deal with the complexities of invoicing, invoicing, tax management, asset management, bookkeeping and financial report processing. complex. If you choose the right one, accounting software provides a hassle-free solution for a business of any size.
Xero is cloud-based all-in-one accounting software designed to help small businesses manage their finances. Thanks to its collaborative and easy-to-use interface, businesses can connect to bank feeds, accountants, payment tools and other third-party applications. It provides simplified expense reporting tools for employees as well as payroll and billing management features for business owners. It allows you to get a quote, send an invoice, track your customers, and accept payments online in multiple currencies.
Developed by Intuit, QuickBooks is a powerful accounting tool designed to help small and medium businesses meet their financial needs. QuickBooks comes in two forms: a desktop version and an online SaaS version called QuickBooks Online or QBO. It offers double-entry accounting, book and ledger keeping, inventory management, financial reporting, and hundreds of app integrations.
Let’s compare QuickBooks and Xero based on:
- Features and integrations
- Ease of use and mobile access
- Reports and security
- Tariff packages
Xero vs QuickBooks: features and integrations
For companies deploying accounting software, it is important that it integrates with other systems, including CRM, reporting and tracking tools, email marketing, e-commerce tools, and payment integrations. Xero and QuickBooks both integrate with hundreds of apps, making it easier for businesses to manage multiple functions from one place.
Let’s take a look at a list of important features that Xero offers:
- Manage invoices, payments, accounts payable, cash flow, quotes and invoices
- Secure transactions with bank connections
- Faster online payments thanks to integration with Stripe, GoCardless and more
- Management of customer data, including original documents
- Payroll management with Gusto integration
- Secure online filing system and inventory management
- Payment in over 160 currencies with up-to-date exchange rates
- Billing software
- Purchase order software
- Automatically calculate sales tax on transactions and prepare sales tax returns
- Track cash flow, metrics, and financial health with Analytics Plus
QuickBooks also provides accounting functionality similar to Xero. Along with a desktop version, it also offers two cloud-based plans: QuickBooks Online and QuickBooks Online Essentials. Here are some of the features:
- Billing and payment reminders
- Management of expenses and taxes (GST, VAT)
- Smooth bank flows to save time and avoid errors
- Inventory management
- Organize receipts with the phone
- Manage a business on the go with a mobile app
- Insights, reports and forecasts
- Multi-currency support, faster payments
- Real-time collaboration with accountants, employees and the bank
- Keep information secure and up to date
Also read: Intuit to buy Mailchimp: what SMBs need to know
Xero vs QuickBooks: Ease of use and mobile access
When it comes to choosing software, a user-friendly interface is one of the most crucial factors. Xero and QuickBooks both have easy-to-navigate dashboards with easy access to various business features.
In addition to a detailed menu on the left side of the dashboard, QuickBooks also provides a quick overview of profit and loss, expenses, bank accounts, invoices, sales, and other tips. The main categories are then broken down into subcategories and everything is self-explanatory – from the ability to add customers’ credit card details under the Invoice category to adding vendor invoices under the Expense category or getting financial and process reports from the Reports category.
Xero also offers an equally user-friendly dashboard, but some users find it a bit difficult to set up compared to QuickBooks. The Xero dashboard is divided into five categories: Dashboard, Company, Accounting, Projects, and Contacts. The dashboard is easily customizable and offers a clean interface.
QuickBooks and Xero both offer mobile apps to help you track your financial activities on the go. Although many users have suggested that there is room to improve the quality of their support, as bugs, crashes, and other issues can interfere with the availability of certain features.
Xero vs. QuickBooks: Reports and security
For financial planning and forecasting, businesses need accounting software that can generate instant reports, including profile and loss statements, balance sheets, payroll overview, and other summary of cash flows. Treasury.
While Xero only generates cash flow statements using the direct method, QuickBooks uses direct and indirect methods depending on business needs. Both platforms offer customizable reporting functionality. In addition, QuickBooks offers better report layouts as well as the ability to generate detailed accounts receivable and payable reports.
Data security is another crucial factor when choosing accounting software. Both software providers offer automatic, secure and encrypted bank feeds, data backup and financial transactions.
QuickBooks vs Xero: Pricing
Xero pricing packages
Xero offers three subscription plans, with 50% off for the first three months, and with different discount options from time to time. You can get add-ons with additional fees such as Payroll with Gusto.
- Advance plan: for independent traders, freelancers and new businesses
- Growth plan: for growing small businesses
- Plan established: for established companies
QuickBooks Pricing Plans
QuickBooks offers one plan for sole proprietors or freelancers and four pricing plans for small, medium, and large businesses. In addition to a 50% discount for the first three months, they are also frequently on sale.
- Easy to start: 1 user; for a new business
- Essential: 1-3 users; to manage your business
- More: 1-5 users; to develop your business
- Advanced: 1-25 users; most powerful plan with many customization, reporting and automation options
Xero or QuickBooks: Choosing the Right Accounting Software
Finding the right accounting software can be overwhelming for a business. But with our comprehensive overview and comparison of the different features, you can choose the right provider based on your team’s needs.
While QuickBooks offers affordable pricing plans, unlimited invoices, time and mileage tracking, advanced customization and reporting capabilities, Xero offers in-depth features and rich experience for growing businesses, supports unlimited number of users and offers better integration and inventory management function with all plans.
Still not sure which one is right for your business? You can try their free 30-day trials and test both accounting software before purchasing one. You can also take a look at our list of the best accounting software to compare other alternatives.