QuickBooks Online and Xero are well-known cloud-based business accounting software solutions that are a favorite of growing companies due to their affordable pricing and scalability. These systems provide accounting features such as invoicing, accounts payable and receivable, and inventory management to help your business stay organized and profitable. QuickBooks was created in 1983 by Intuit, garnering nearly 40 years of development behind it. A New Zealand-based company launched Xero in 2006 to challenge the growing accounting software market. Intuit also offers QuickBooks Desktop versions for companies that require it, but we will compare the Online version in this guide. Ironically, we don’t recommend this plan to freelancers due to its lack of tools, even though we do recommend QuickBooks as the best accounting software for the self-employed.

QuickBooks Live for QuickBooks Online

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. We encourage you to research and compare multiple accounting software products before choosing one. If you need to give accounting access to more than five people, Xero could be the better option for you. QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $235 per month. In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month.

QBO claims that customers find on average $3,534 in tax savings per year. QuickBooks Online has always been a great option for small businesses. With the addition of the Advanced plan, QBO is a good choice for larger businesses, as well. 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 QuickBooks Online can help your business differently

The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability. However, we want to emphasize that Xero offers fixed asset accounting in all its plans, making it an affordable QuickBooks alternative for fixed asset management. We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements.

Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop. The Enterprise Desktop plan offered by QuickBooks starts at $1,922 per year. Once connected, QuickBooks bank feeds give you an accurate, real-time view of your cashflow and finances. The platform will download all transactions from the last 90 days, and will also let you import up to 2 years of historical transactions. Data imports are automatic and secure, but you will need to reconfirm the connection occasionally for security purposes.

1. Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.
2. By providing feedback on how we can improve, you can earn gift cards and get early access to new features.
3. We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements.
4. QuickBooks and Xero both offer a lot of features, including all the core abilities that make these two options the best small business accounting software around.
5. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years.

Overall features

There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and 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.

With QuickBooks, you can record the purchase of a fixed asset, but with Xero, you can track fixed assets, calculate and track their depreciation, and much more. Xero also offers stronger tools for tracking project profitability, giving you access to real-time reports. Additionally, Xero is a better choice for international businesses needing multicurrency support. The QuickBooks Advanced plan costs $200 per month, supporting 25 users. With a free plan and paid plans starting at $20 per month, Zoho Books has plans for most budgets. Higher-tier what is cost of goods sold cogs and how to calculate it plans include unique features, like workflow rules, on top of tools that help you measure project profitability.

QuickBooks also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. This all-in-one accounting software is particularly popular with startups and younger business owners, and is known for its clean, uncluttered interface. Xero is slightly more expensive than QuickBooks, but it doesn’t have limitations when it comes to users (although the cheaper plan does have some restrictions). You can also cancel anytime with QuickBooks, whereas Xero requires a month’s notice of cancellation.

You have a growing startup

QuickBooks Online has a number of other support resources, including a help center, in-software help, training, and guides, to help you get the answers you need. Both Xero and QuickBooks Online have troubles when it comes to customer service. The biggest downside of Xero’s customer service is that there is no phone support available.