From CRM systems to payment processors, QuickBooks integrates with a wide range of popular platforms, saving you time and effort. With QuickBooks, you’ll get expert help from real people through phone and live chat six days a week. Our specialists are here to support you with every part of your QuickBooks journey, from the initial switch to onboarding. Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization with its mobile app as well as the online version. While QuickBooks Online is very popular among business owners, some have problems with the system.
Who Uses This Software?
- Both QuickBooks and Xero offer tax preparation features, and that feature is just one reason why our researchers gave both services a perfect 5/5 for financial reporting.
- The Advanced Plan is the final tier for $100 per month for the first three months, then reverts to $200 per month.
- QuickBooks Online goes to $30 per month after that and is easily our most expensive option.
- Support network refers to a community of software users that can extend professional help to businesses.
We break down the prices in our QuickBooks Live review’s pricing section. Xero’s invoicing capabilities allow you to create and customize an invoice for clients and then accept credit card, debit card or bank transfer payments within the invoice itself. Xero processes payment through a payment gateway like Stripe, GoCardless and others. Keep in mind that these services charge a fee to process payments project accounting software (usually around 2.9% plus 25 cents per transaction, though this varies by the payment processor). On the other hand, Xero may be the better choice for your business. Xero is strong accounting software that has everything you need to track the financials of your business.
QuickBooks Online takes the lead because it’s generally easier to use than Xero. While Xero is easier to set up, QuickBooks has a more intuitive and customizable dashboard and has time-saving features. For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero. They’ll help you reconcile your bank and credit card statements and prepare monthly reports. Xero has a slight edge in this category due to its ability to create a sales tax return and pay sales tax liability with either a check or journal entry definition electronically. While neither provider allows you to file a sales tax return, Xero’s features allow for more accessibility when it comes to sales taxes.
Then, we award each piece of software a rating out of five for each of these categories to understand how they compare against each other. Aside from helping us to determine which solution is stronger overall, these scores also help us to determine which product is better suited to different types of businesses. In sharp contrast with QuickBooks’ extensive language support, Xero does not offer support for languages other than English. There are some workarounds, like downloading the basic invoice template, manually changing the language, and reuploading it, but there’s no easy support for multiple languages. Both services have plenty to offer, but in the end, Xero has more integrations than QuickBooks. Danielle Bauter is a writer for the Accounting division of Fit Small Business.
Supported Languages
Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users. Xero and QuickBooks Online are robust accounting software programs, and—in our case study—both prove why they’re the leading tools in the industry. They may have almost the same features, but each has its own strengths and drawbacks. Support network refers to a community of software users that can extend professional help to businesses.
Plans start at $15 purchased equipment on account journal entry 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. All plans currently have a 95% off promotion for the first three months.
Tax Support
With the addition of the Advanced plan, QBO is a good choice for larger businesses, as well. QuickBooks Capital gives you a way to get a hassle-free small business loan. You can apply right within the software, and your financial information is used to determine if you qualify and the amount you can receive. Since Xero no longer has built-in payroll, its tax support is limited only to sales tax. QuickBooks Online offers much better invoicing with multiple templates to choose from as well as built-in packing slips. Xero only has one invoice template, and you have to download and import a packing slip template into the software.
How We Evaluated Xero vs QuickBooks Online
This cloud-based solution also supports cash-basis and accrual accounting methods and uses double-entry accounting. It has solid mobile apps, and it has a large number of integrations, although it falls a bit short of Xero. Both offer great accounting features and integrations, but which one is better for small businesses? With a research score of 5/5 for software attributes and 5/5 for its accounts receivable features, the complimentary software gives Quickbooks and Xero a run for their money too.
