Xero vs QuickBooks for Accounting Features, Fees, Support

It’s important to note that FreshBooks is the most competitively priced software solution we found. While QuickBooks Online is only 50 cents more than Xero, note that that is the introductory cost for the first three months. QuickBooks Online goes to $30 per month after that and is easily our most expensive option.

Spotlight: Product Updates

Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. You can do a lot with QuickBooks Online, but all the options may feel like information overload starting out. Another cumbersome feature that users don’t like is the requirement that clients must establish their own accounts to pay an invoice. Other popular merchant processors don’t require this, making collecting payments more difficult. Xero may be harder to learn than a simpler invoicing platform like Square Invoices or Zoho Invoice.

Ironically, we don’t recommend this plan to freelancers due to its lack of tools, even though we do recommend QuickBooks as the best accounting software for the self-employed. Plans start at $15 per month for up to 20 invoices, five bills, bank account reconciliation, receipt capture and short-term cash flow snapshots. Its $78-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims.

Startups & Small Businesses

1. We’ve chosen Gusto because it’s regarded as one of the best payroll solutions for small businesses using Xero in the US.
2. Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.
3. QuickBooks has been GAAP and IAS compliant for longer than Xero, and has been the preferred choice of many accountants for some time.
4. To compare QuickBooks vs. Xero accounting, we consulted product documentation and user reviews.
5. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems.

Payments are due by the end of your monthly billing period based on the date you purchased your subscription. While both are very similar, these two products have exclusive benefits that set them apart. This guide will explore the key differences and declare our respective winners in each category. By providing feedback on how we can improve, you can earn gift cards and get early access to new features. If you don’t have the time to devote to learning the software, QuickBooks Online may be the better fit.

Xero and QuickBooks both offer a good number of integrations in their respective marketplaces. QuickBooks Online is rated 4.2 out of 5 on Capterra by 3520 users, while Xero has an average of 4.3 from 1880 users. QuickBooks works on Windows PCs, Macs, and major browsers including Mozilla Firefox, Google Chrome, and Microsoft Edge. If you have Windows, you’ll need to be running Windows 7 or newer, with at least 4GBs of RAM and a processor comparable to the Intel Core i5. Both services are available on all the most common devices and browsers. Here’s our comparison of the core features provided by Xero and QuickBooks.

The Plus Plan is $45 per month for the first three months, then becomes $90 per month, and adds up to five users. It also has inventory management and gives you the ability to project profitability with forecasting reports. The Advanced Plan is the final tier for $100 per month for the first three months, then reverts to $200 per month. This allows more users (up to 25) and increases analytics for users to assess the business’s health. There is workflow automation, data restoration, batch invoices and expenses and on-demand training.

Project and time tracking

However, QuickBooks Online offers features you won’t find with Xero, such as mileage tracking and built-in lending, and also has stronger invoicing. QuickBooks Online has four pricing plans ranging from $35/month to $235/month. The more expensive QuickBooks plans include additional features and users. You can send invoices and quotes, enter bills and reconcile bank transactions for $30/month. QuickBooks is Intuit’s general accounting software, while QuickBooks Online (QBO) is specifically the cloud-based service. For QBO, you pay a monthly subscription rather than an upfront fee, and you get all the patches and software updates from Intuit.

Core offers the basics, while Premium adds same-day direct deposit, role-based access, and auto time tracking. Elite also adds net positive tax penalty protection, and a dedicated pro to help set up and troubleshoot. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one. Both Xero and QuickBooks Online have their own versions of transaction tracking tags, but QuickBooks Online is the winner in this arena. Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans.