Despite not offering unlimited invoices and bills in its base plan, Xero accounting software is a more scalable solution than QuickBooks in terms of the number of users it supports. Xero supports unlimited users what is the expanded accounting equation with all its subscription plans, while QuickBooks allows only up to 40 users with its highest-tiered plan. 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. While Xero and QuickBooks Online have a lot in common (i.e., advanced features and numerous integrations), there are a few features that separate the two.
When you might choose Xero instead
This requires the software to allow users transitioning from other bookkeeping software to import their chart of accounts (COA), vendors, customers, service items, and inventory items. Ideally, there will be a wizard to walk the user through the import process. Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email. Software providers also receive points based on other resources available, such as self-help articles and user communities. Finally, they are awarded points based on the ease with which users will find assistance from independent bookkeepers with expertise in the platform.
Unlike some other vendors, QuickBooks leaves no questions about what you get for your dollar. Xero offers three pricing tiers, ranging from $9 per month to $60 per month. When choosing the best accounting tool for your business, don’t overlook the importance of integration. Your accounting system is one of your core tools, and for maximum results, you should integrate with your other systems.
Our business support means a great deal
Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans. The more categories you create, the more reports you can run to get a better idea of how your business functions and where there’s room to grow. All plans include 24/7 live chat support; phone support is available 5 a.m. Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
The platform offers high-quality built-in integrations with many leading business software vendors. For example, QuickBooks integrates with Square, Gusto, PayPal, eBay, Shopify and Etsy. All Xero pricing plans include 24/7 online customer support; you can cancel with one month’s notice. If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available.
Xero pricing
- She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners.
- She also regularly writes about business for various consumer publications.
- From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs.
- With this system, you can add products or services, track inventory, make adjustments, make internal notes, and add attachments.
However, QuickBooks Online offers features you won’t find with Xero, such as mileage tracking and built-in lending, and also has stronger invoicing. QBO also has a handful of features you generally don’t see with accounting software, including its QuickBooks Capital lending platform and QuickBooks Checking business banking account. Xero also stands out for its strong security, which is pretty much unmatched in the industry. Xero also has one of the strongest contact management features in the game.
You can send invoices and quotes, enter bills and reconcile bank transactions for $30/month. With Quickbooks, expenses functionality is built into all plans rather than offered as an add-on (or gated behind higher plans) as with Xero. This can mean some small cost savings and extra simplicity if you have a small business. Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
Perhaps our favorite Xero bill pay feature is that you can use the platform to schedule batch payments for one or many vendors. This is the easiest tool we encountered in any accounting software platform for making timely payments in one click. We were delighted that Xero makes it so simple to keep up on your accounts payable and avoid late payment fees. Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your locking cash box needs, there’s sure to be an accounting software program that’s a perfect fit.
With either tool you’ll get reliable features for processing invoices and quotes. Xero makes it easy to create invoices and preview before sending, although the system can occasionally be glitchy, at least in our testing. That said, before you choose between Xero and QuickBooks, triple check that your bank is supported! You can connect your bank account during the trial period to make sure it’s working 100%. Both QuickBooks and Xero are easy to set the formula for the present value of a future amount up and offer a huge range of banking integrations for many regions.