Xero v QuickBooks Online 2023 Feature Comparison

Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. I have learned never to underestimate the importance of live product support, particularly when it comes to managing my money. Another benefit is that QuickBooks Online is better for small businesses, as you’re able to scale with your growing company. QuickBooks Online’s accounting software has a looser setup structure, allowing you to enter the bare minimum and add the rest as you go along. The Xero accounting interface is clean and uncluttered, and new users have access to a demo company where they can manipulate data without worrying about entering or deleting important information. You can do a lot with QuickBooks Online, but all the options may feel like information overload starting out.

1. To make the decision a little easier, we’re comparing Xero and QuickBooks Online, side by side based on features, pricing, ease of use, and more.
2. Its prices are competitive, especially if you use QuickBooks Self-Employed.
3. From mobile to desktop, you can access QuickBooks Online on virtually any device.

Below are the reasons they choose Quickbooks Online for their bookkeeping and accounting needs. You may wonder why it quickly became a go-to software for most businesses. Below are reasons they choose Quickbooks Online for their bookkeeping and accounting needs.

Unlimited users for a low cost

Xero offers a 30-day trial to see if this accounting tool is the one for your business. Growing businesses can invest and upgrade to enjoy more advanced features, from Xero’s Starter, Xero Standard, to Xero Premium. Add-on third-party AP automation software can be integrated with both Xero and QuickBooks Online accounting software or ERP systems. The best AP automation software starts with self-service supplier onboarding through a supplier portal.

How the Products Stack Up

Reporting in Xero is solid, with a variety of financial statements and management reports available. Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. This doesn’t mean QuickBooks Online is the right choice for all businesses, though.

About QuickBooks Online and Xero

Trying to find the right accounting software for your business can be a time (however worthy) consuming challenge. To make this easier for you, we’ve created well-formatted comparison articles of the most popular brands to streamline your research. Xero is the go-to choice for rapidly growing businesses and startups because it scales well with them. Meanwhile, solopreneurs and small business owners will find QuickBooks Online more suitable. If you have a bigger business, QuickBooks offers enterprise-level solutions. After knowing the key features above, we can conclude that both Quickbooks and Xero can give your business solid accounting operations.

In this article, we’ll mostly refer to QuickBooks Online, which is what we think you’ll likely opt for instead of Intuit’s desktop version of QuickBooks. A cloud accounting tool is one of the most powerful contributors to the day-to-day running of a company. With a system like Xero or QuickBooks Online, you can enjoy a crystal-clear view of your accounting, maximize tax deductions, and even stay on top of projects and time tracking.

It lets you edit customer information on the invoice page instead of forcing you to navigate to your customer records. This feature can be handy when you need to change the billing address. When reviewing a product, users are asked to assess the product’s overall quality, which includes assigning specific ratings for ease of use, value for money, customer support, and functionality. QuickBooks Online is undoubtedly the most recognizable name in accounting software, but there are many other options for small businesses to consider. While QuickBooks is the most notorious, other popular software like Xero could be the better choice for running your business.

QuickBooks vs. Xero Compared

Forbes Advisor compared Xero vs. QuickBooks when it comes to the key features, pricing, customer service and reviews to help you decide which is right for your business. To compare QuickBooks vs. Xero accounting, we consulted product documentation and user reviews. 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.

Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances. Yes, QuickBooks’ accounting tools do come in a little higher in overall pricing, but the plan options are more flexible and offer more features than Xero’s plans. 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.

All plans include 24/7 live chat support; phone support is available 5 a.m. We believe everyone should be able to make financial decisions with confidence. Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan.

Xero serves two million users worldwide, with leading cloud accounting market share in New Zealand, Australia, and the U.K. Xero best suits medium to large businesses but works for all businesses. In addition, Xero has a far more user-friendly interface than QuickBooks, so its ease of use makes it the perfect choice https://intuit-payroll.org/ for the self-employed and those with less accounting experience. There is easy integration with other QuickBooks applications such as QuickBooks Payments and QuickBooks Payroll. Plus, QuickBooks Online offers add-ons such as Mavenlink, Shoeboxed, Jobber, Bill.com, Time Tracking by TSheets, and Method CRM.

Otherwise, you’ll have to bump up your subscription or consider QuickBooks Online plans. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and amended returns and form 1040x QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit.

In this guide, we will explore the key differences and declare our respective winners in each category. QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep. An accounts payable aging report is one of the best accounting reports you can run.

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. Unfortunately, many don’t have positive experiences with QuickBooks’ customer support. One complained that they are often transferred to different departments when they contact QuickBooks.

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. QuickBooks Online’s customer support is better than Xero’s since you can interact with an agent through a phone call. You can’t initiate a call, but you can submit a ticket and wait for an agent to call you. Note that fixed asset accounting isn’t part of our case study, so there are no scores. Xero is the winner in this category, offering more than 700 apps that can connect with its core application. For those moving their small business’ accounting over from another application, you can import data into QuickBooks Online using the Import Data function.

Xero Limited was created in 2006 in New Zealand, with a focus on cloud-based business accounting software. Xero holds the highest market share in Australia, New Zealand, and the UK. As a result, you’ll have to process payroll for more employees, cater to more customers, and manage larger inventories. Thus, you must ensure your accounting solution grows with you and your business.

On top of that, you can only convert quotes, not estimates, to invoices in Xero. 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. All QuickBooks pricing packages include automatic expense importing and categorization. You can also take photos of receipts and upload them from the mobile app. QuickBooks will automatically match receipts to recorded expenses or generate new expenses accordingly.