Xero vs QuickBooks for Accounting Features, Fees, Support

QuickBooks Online is full-featured accounting software that is easy to use, even if you’re new to accounting. In addition to the standard accounting features you’d expect, QuickBooks Online also has advanced features, exceptional invoicing automatizations and customizations, and built-in lending. It also has mobile apps that, according to users, outperform other popular accounting software apps. Xero also allows you to create quotes, send invoices and enter bills, and you can accept online payments by credit card, debit card, direct debit, Apple Pay, Google Pay, Stripe and GoCardless. You can also sync your bank accounts for automatic tracking and reconciliation. However, keep in mind that the entry-level Early plan only supports 20 invoices and five bills per month, so if you regularly exceed that, then you’ll need to upgrade.

1. The inventory management and job costing features are more robust in QuickBooks compared to QuickBooks Online.
2. We collect the data for our software ratings from products’ public-facing websites and from company representatives.
3. For more information about services provided by Live Bookkeeping, refer to the QuickBooks Terms of Service.
4. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems.
5. This add-on is available for an additional charge and assigns a professional bookkeeper to manage your books.

QuickBooks Online Review 2024: Features, Pros & Cons

Live bookkeeping services for additional help with your books start at $50/month. Xero offers three pricing plans that range from $15/month to $78/month. While Xero’s $13 Early discretionary charge at restaurants plan is far cheaper than QuickBooks’ $30 Simple Start plan, it’s also very limited due to the caps on invoices and billing. A better comparison is the $60 QuickBooks Essentials plan (plus the $45 Core or $80 Premium payroll plans) vs. the $37 Xero Growing plan (paired with the $40 or $80 Gusto plan). Essentials supports just three users, while Growing is unlimited, making it better value for large or growing operations. 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.

Best Accounting and Bookkeeping Apps for Small Businesses

The QuickBooks Simple Start plan costs $30 per month and supports one user, making it best for very tiny businesses or for a single freelancer. 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). QuickBooks Online has a range of product tiers to meet your business’s bookkeeping needs.

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The Plus Plan is $45 per month for the first three months, then becomes $90 per month, and adds up to five users. It also has inventory management and gives you the ability to project profitability with forecasting reports. The Advanced Plan is the final tier for $100 per month for the first three months, then reverts to $200 per month. This allows more users (up to 25) and increases analytics for users to assess the business’s health. There is workflow automation, data restoration, batch invoices and expenses and on-demand training. This plan also gives you a dedicated account team to help with training, troubleshooting and setup.

Moving up to the Essentials Plan, you’ll pay $30 per month for the first three months, then $60 per month. This plan adds up to three users to the account so that the right people have access to data at their fingertips. It also net assets gives you bill management and collects employee time for invoices to add them for proper billing. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. Xero, FreshBooks and QuickBooks all offer 30-day free trials and extensive features for online support, including a live chat, email support and a knowledge base.

Today’s leading accounting platforms offer standard security features such as data encryption, secure credential tokenization and more. While human error will always play some role in security breaches, you can be confident in your accounting platform when it comes to keeping your information safe. The inventory management and job costing features are more robust in QuickBooks compared to QuickBooks Online. Another cumbersome feature that users don’t like is the requirement that clients must establish their own accounts to pay an invoice. Other popular merchant processors don’t require this, making collecting payments more difficult. Today’s leading accounting platforms offer standard security features like data encryption, secure credential tokenization and more.

The main differences between Xero vs QuickBooks lie in features and pricing. Xero is more affordable than QuickBooks Online, always includes unlimited users, and offers inventory management and fixed asset accounting in all its plans. Xero accounting software is a cloud-based system that helps small businesses manage their finances. The software offers a variety of features, including invoicing, tracking expenses and creating financial reports. Xero four ways to legally avoid paying us income tax also integrates with other business applications, such as payroll and inventory management systems.