The search for the best accounting software can be a lengthy process. This is because you have to consider various things. These things like features, budget, and, of course, evaluate the various alternatives available. If you’re in the middle of it, you’ve undoubtedly come across Xero and QuickBooks. Xero and QuickBooks online are both robust accounting software available for small businesses. These two popular accounting software are available for small businesses.
For those looking for Xero vs Quickbooks difference, here in this blog, we will discuss the difference between both software. Both Xero and QuickBooks provide excellent accounting features and integrations. But which one is more suitable for small businesses? Our clear difference between Xero vs Quickbooks breaks down both options.
Xero vs Quickbooks: Overview
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Xero and QuickBooks Online are both web-based services, which means you can log in and view your account from anywhere. Furthermore, both Xero and QuickBooks have a variety of plans to select from, all of which are charged on a monthly subscription basis, with the software features growing as you move up the levels.
Furthermore, both Xero and QuickBooks include a free mobile app for managing your accounting as well as several third-party connectivity possibilities. You’ll need to know more about each software’s capabilities in order to choose which option is ideal for your company. As a result, let’s begin our Xero vs QuickBooks Online comparison by examining each solution separately.
Now that we have an idea of what Xero and QuickBooks are and what they offer. Let’s take a deeper look at how their capabilities stack up against one another.
Xero vs Quickbooks: Some Excellent Features Of Both Softwares
Xero Accounting Software Features
You have three options when it comes to Xero accounting software: Early, Growing, and Established. Overall, you can expect Xero to give you a comprehensive set of accounting tools and features, including:
- Bank reconciliation and connections
- Unlimited users
- Invoicing, quotes, and bills
- Purchase orders
- Dashboard and reporting
- Fixed asset management
- Free mobile app
- Merge with over 700 third-party outlets
- Inventory tracking and management
- Sales tax management
- Contacts, smart lists, and file storage
- Payroll partnership with Gusto
- 24/7 customer support
QuickBooks Online Features
However, much as with Xero, you can anticipate certain features with QuickBooks Online regardless of which subscription you pick, such as:
- Revenue and expense tracking
- Ability to accept payments
- Invoicing and estimates
- Tax organization tools
- Access for your accountant
- Basic reporting
- Bank account connection and reconciliation
- Integration with different QuickBooks apps and third-party platforms
- Receipt capture and community
- Free mobile app
- Phone-based customer support
Xero vs Quickbooks: Main Difference Table
Here is the main difference table of Xero vs Quickbooks. Just go through this difference and understand the difference completely:
|Integrations||More than 1,000 applications, including a sophisticated payroll interface with Gusto.||QuickBooks Time, QuickBooks Payroll, and Gusto are among the more than 650 apps available.|
|Free trial||Before choosing a package, new customers have 30 days of free access to all of Xero’s services.||Get 50% off or take a 30-day free trial for the first three months.|
|Project management||Established plan only.||Plus plan and up.|
|Time tracking||Specified plan only.||It comes with an Essentials plan and up.|
|Multi-currency support||Specified plan only.||Essentials plan and up.|
|Mileage tracking||Specified plan only.||All plans.|
|Invoices||20 with Early and Unlimited with Growing and Specified plans.||Unlimited with all plans.|
|Customer support||Online assistance is available at all times. There is no phone number for customer service.||Phone or online chat customer service is available Monday through Friday from 6 a.m. to 6 p.m. Saturday from 6 a.m. to 3 p.m. PT for Simple Start, Essentials, and Plus. Support is available 24 hours a day, seven days a week on the Advanced plan.|
Xero vs Quickbooks: Pros and Cons
Pros Of Xero
- Supports many users for no additional cost
- Appropriate for extensive and expanding companies
- Progressive accounting features
Cons Of Xero
- Steep learning curve
- The most inferior tier plan is very limited
Pros of Quickbooks
- Simple to use
- Progressive accounting features
- Reasonable mobile apps
Cons of Quickbooks
Xero vs Quickbooks: Which One Is Better?
Both Xero and QuickBooks Online have a lot of positive feedback from their consumers. But for different reasons. The majority of Xero reviews on the internet are good. Users like the software’s extensive feature set, several time-saving automation, and numerous integrations. The most prominent complaints are the lack of functioning and crashing of Xero’s mobile applications, the problems of learning the programme, and the lack of phone help. Some customers have also expressed dissatisfaction with the cost, claiming that more complex capabilities are only accessible on Xero’s most expensive subscriptions. Several customers have also expressed dissatisfaction with the loss of built-in payroll software.
QuickBooks Online has a mostly good public image as well. QuickBooks Online is easier to understand and use than QuickBooks Desktop. Users highly praise QuickBooks Online’s rich feature. Users frequently cite integrations and automation as reasons for their eagerness for QuickBooks. But many users have complained about QuickBooks Online’s lack of email assistance, pricey pricing options, and intermittent outages and crashes. When comparing QBO to QuickBooks Desktop, several customers were dissatisfied by the lack of functionality, and some even returned to using the locally installed programme after trying QuickBooks Online.
Xero vs Quickbooks: Which One Is Easier To Learn?
The functionality and interface of QuickBooks Online are significantly easier to learn and use than those of Xero. While QuickBooks has a little learning curve, it is far more intuitive and straightforward than Xero. Setup, learning, and using QuickBooks Online is surprisingly simple.
Unlike QuickBooks Desktop, QuickBooks is suitable for newcomers accountants with no prior knowledge. The user interface is well-designed and simple to use, albeit the organization might be better. QuickBooks Online offers a built-in help tool to assist you if you can’t locate what you’re searching for.
Whereas Xero has a somewhat high learning curve making it difficult for users who have no prior accounting knowledge. On the good side, the user interface is appealing and well-organized. However, after you’ve mastered the programme, you’ll find it to be rather simple to operate. There are also several tools available to assist you in setting up, learning, and using the programme, including articles, videos, and Xero’s help centre.
Xero is accounting software that is designed specifically for small businesses. It has a user-friendly interface, and it offers features like bank feeds, invoicing and receipt scanning. It also has payroll features that allow you to process payments for employees. Quickbooks is more traditional accounting software that was designed for medium-sized businesses. It offers the same features as Xero but with a more complicated interface. Quickbooks does have some features that Xero does not offer, such as inventory management and project management.
We hope you understand the difference between Xero vs Quickbook.
Frequently Asked Questions
Is Xero a threat to QuickBooks?
Xero is very similar to QuickBooks in its business proposition and customer offerings, making it a powerful threat to QuickBooks.
Why is Xero the best?
Xero is the perfect option for medium-to-large companies. The programme is well-designed and has a robust accounting system as well as several features, reports, and connectors. Xero also allows for unlimited users on all plans, which is nearly unheard of in the accounting software industry.