QuickBooks Online leads in many categories, but Xero has some slight advantages in terms of fixed asset management, project accounting, and taxes. We tackle these differences between Xero and QuickBooks in detail in the following sections. This easy-to-use and feature-rich software is ideal if you have no bookkeeping experience and want top-notch customer support. Regardless what is a contra asset account of what route you choose, make sure to do your research and get hands-on with free trials to find the accounting software that’s right for your business.

A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments. While it’s not part of our case study, we evaluated Xero vs QuickBooks Online in terms of assisted bookkeeping. QuickBooks Online is the clear winner because of its wide range of services available for users of the software. Not only does it offer QuickBooks Live, but most online services also work with QuickBooks Online, such as Bench, Brainy Advisors, and Merritt Bookkeeping. While Bookkeeper360 provides bookkeeping services for Xero users, it is also compatible with QuickBooks Online. 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 electronically.

QuickBooks Online Pricing

The app has a built-in timer you can use to record time as you work, or you can use the location-based job tracker through the mobile app. Xero also allows you to create a project or job, track time to add to it and add details to invoices when you’re ready to bill clients. Xero also offers mobile receipt capture through its Xero Me mobile app (previously called the Xero Expenses app), though you’ll need to upgrade to the Established plan to claim expenses.

1. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.
2. This includes the ability to accept payments, view reports, and assign expenses to customers or projects.
3. With features like automatic expense tracking, a user-friendly interface, and extensive reporting options, QuickBooks aims to streamline financial management for small businesses.
4. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
5. With QuickBooks Online, you can track expenses by project in the Plus plan, but you can’t compare it to estimated costs unless you have the Advanced tier.

Discover BusinessLoans.com’s lender network offering up to $3M in funding, no minimum credit score required. If you don’t have the time to devote to learning the software, QuickBooks Online may be the better fit. Here’s a full breakdown of the main features of Xero and QuickBooks Online. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their accounting for unearned rent incomes. Live Bookkeepers aren’t responsible for errors resulting from incorrect information that you provide, or if you re-open the books by overriding closure after a Live Bookkeeper completes the month-end closure. Xero utilizes an App Marketplace with over 1,000 apps to extend its core functionality.

Reporting: QuickBooks Online Wins

We break down the prices in our QuickBooks Live review’s pricing section. Another reason QuickBooks Online stands out is its ability to calculate sales tax rates automatically based on the customer address, which is something Xero can’t do. Hence, it’s no surprise that QuickBooks Online is our overall best invoicing accounting software.

Who is QuickBooks Online for?

Features include expense tracking, contact management, and unlimited invoices and estimates. Reporting abilities are limited, though a raft of third-party integrations are available (many cost a little extra, but some are free). Xero and QuickBooks are two the of most what is an education ira popular accounting software solutions for small businesses looking to keep track of finances.

This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support. It’s easy to see why QuickBooks is a standout choice for small-to mid-size businesses. Its intuitive interface, robust feature set, and readily available customer support make it a comprehensive and user-friendly solution designed to help grow—and scale with—your business. Compare the features, pricing plans, and add-ons available with both QuickBooks and Xero to find the best accounting solution for your business. The Business category is where you’ll find invoicing, bills to pay, purchase orders, and products and services.

Simple Start

One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees. The software is also updated automatically, so businesses always have the latest features and security patches. Overall, Xero is an efficient and cost-effective way for small businesses to manage finances. Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge.

This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users. It’s also less expensive than QuickBooks Online and a bit easier to use, thanks to its customizable dashboard and simple layout. Both QuickBooks and Xero let you set up automated data tracking and report generation, but QuickBooks has more granular options, making it faster to compare reports against historical data. You’ll still be able to accomplish everything you need with both, but it’ll be a little faster with QuickBooks. That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary.

With Xero, you have to connect your account to reconcile your transactions. Since Xero no longer has built-in payroll, its tax support is limited only to sales tax. Discounts are available for nonprofits and users that own multiple businesses. Speaking of pricing, QuickBooks Online can get a little expensive and may be out of budget for smaller businesses looking for a more cost-effective accounting solution. Join the thousands of people like you already growing their businesses and knowledge with our team of experts. We deliver timely updates, interesting insights, and exclusive promos to your inbox.