QuickBooks was created in 1983 by Intuit, garnering nearly bank loans and overdrafts 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.
Plus, when you factor in the accounting tools and general features involved with each individual plan, it’s easy to argue that both Xero and QuickBooks Online are appropriately priced for their services. adjusted ebitda calculation Xero is cloud-based accounting software that supports cash-basis and accrual accounting. Xero has a robust set of features, an impressive number of integrations, and strong mobile apps for accounting on the go. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits.
Best Small Business Accounting Software in 2024
Through QBO, you can prepare and print W-2s for your employees and 1099-MISCs for your contractors. QuickBooks Live Tax also gives you access to expert tax advice, maximum tax deductions, and tax filing through TurboTax (pay only when you file). 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. Join the thousands of people like you already growing their businesses and knowledge with our team of experts. We deliver timely updates, interesting insights, and exclusive promos to your inbox.
QuickBooks vs Xero: Which is best for your business in 2024
Payments are due by the end of your monthly billing period based on the date you purchased your subscription. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business. All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person. 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 for the self-employed and those with less accounting experience. This being said, if you’re looking for the ultimate winner between QuickBooks Online vs. Xero, it’s difficult to say one solution is objectively better than the other.
Overall features
- Integrates with more than 750 apps and offers live, in-house bookkeeping add-on.
- The search for the right business accounting software can be extensive—deciding what features you need, what your budget looks like, and of course, comparing the different options on the market.
- Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.
If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website nonprofit statement of cash flows by location and industry.
Prices for QuickBooks Live Bookkeeping scale with the monthly expenses of your business, which means higher costs for businesses with higher expenses. We break down the prices in our QuickBooks Live review’s pricing section. You can rely on Xero and QuickBooks Online for project accounting, as both allow you to create estimates and set up and track projects. With QuickBooks Online, you can track expenses by project in the Plus plan, but you can’t compare it to estimated costs unless you have the Advanced tier.
Add-ons include QuickBooks Payroll, which starts at $50/month plus $6/month per employee. QuickBooks Payments allow you to accept ACH, credit card, debit card, and other payments at rates of 1% to 3.5% per transaction. Live bookkeeping services for additional help with your books start at $50/month. QuickBooks Online takes the advantage when it comes to invoicing, offering six customizable invoice templates (compared to just one offered by Xero).
However, this ability could also affect the consistency and reliability of the mapping, so you’ll want to use this feature carefully. QuickBooks Online Plus will cost $80 per month (but the three-month discount also applies to this plan). This plan costs $50 per month—and will only cost $25 per month for the first three months of your subscription with the current QuickBooks discount. First, the Established plan allows you to manage your accounting in multiple currencies. Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years.
