We considered features such as invoicing, billing, payments, expense tracking, mileage tracking, project and time tracking and inventory management. We also weighed factors such as pricing, user experience, customer service and integrations. QuickBooks Online is the winner in this category because of its many features that Xero lacks. This includes the ability to accept payments, view reports, and assign expenses to customers or projects. However, both mobile apps let you send invoices, capture receipts, enter bill payments, and categorize expenses straight line depreciation in the bank feed.
Bill Pay
We were impressed with this flexibility — you can make appropriate payments for your current cash flow. We liked that Xero’s app store neatly organizes and categorizes these apps. This makes it easy to find the integrations you need and compare several options side-by-side.
However, if you work with multiple vendors and customers and need more enhanced features, you should consider QuickBooks Online’s Plus tier. This is because QuickBooks was designed for small businesses that might not have an accounting background, whereas Xero was designed with accountants and bookkeepers in mind. QuickBooks is also better for businesses that need to track inventory, as it has built-in inventory management features. Xero also what are liability accounts has inventory management, but it’s not one of its core functions. QuickBooks is available both online and via desktop and is ideal for businesses that outsource their accounting tasks to a bookkeeper or accountant.
If you only send out an invoice or two each month, the Early how to calculate depreciation expense for business plan is an affordable option at $15 per month. Otherwise, you’ll have to bump up your subscription or consider QuickBooks Online plans. All plans include 24/7 live chat support; phone support is available 5 a.m. Xero stands out with unlimited users on all plans, which can be a big advantage for larger teams or businesses that require collaboration with accountants. We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
Xero’s alternative software to QuickBooks is built to support small businesses like yours. Send invoices and automate reminders, track and pay bills, and get your bank data into Xero with support for over 21,000 financial institutions. Xero’s most basic plan (Early) comes at a tempting $9/month, but you’re very limited with the feature set.
QuickBooks Online vs. Xero: Which Software Is Better for Your Business in 2024?
- We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances.
- Some of QuickBooks’ most popular app integrations include the payment app BILL, the line of credit solution Fundbox, and the expense management platform Expensify.
- This user review score helps us give more credit to software products that deliver a consistent service to their customers.
- If you’re looking for a QuickBooks alternative, Xero is one of your best options.
If you’re looking for a QuickBooks alternative, Xero is one of your best options. QuickBooks has been GAAP and IAS compliant for longer than Xero, and has been the preferred choice of many accountants for some time. All in all, it’s unlikely that your accountant will have any issues with working with QuickBooks. If you’re based in the US, your accountant’s main complaint might be lack of experience with Xero. QuickBooks is the market leader in the US, so they will likely be used to working with that. Xero is more common outside of the US, and UK and New Zealand accountants in particular will likely recommend it.
Assisted Bookkeeping: QuickBooks Online
You can use QuickBooks to run roughly two dozen prebuilt accounting reports, whether using the mobile or desktop QuickBooks version. Additionally, with QuickBooks Plus and Advanced, you can create custom reports. Across all pricing plans, you can also create custom tags for your reports.
This disappointed us, but not as much as the narrow client payment options available. You can only accept payments via card or direct debit with Xero, boxing out clients who prefer newer technologies. Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero.
If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative. It has comparable invoicing features, but lacks an audit trail and doesn’t integrate with third-party apps. Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions. Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
