The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions. The bank reconciliation module must also let users reconcile accounts with or without bank feeds for optimal ease of use. Lastly, the software must generate useful reports related to cash. Another reason QuickBooks Online stands out is its ability to calculate sales tax rates automatically based on the customer address, which is something Xero can’t do.
Beginning August 1, 2024, prices will run from $35 to $235 per month. QuickBooks Online and Xero both have a large collection of integrated apps, which should be enough to cover your business automation needs. Many, or all, of the products featured on this page are from inventory to sales ratio our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.
Overall features
Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero. QuickBooks Online is an industry standard with more than 5 million users worldwide. If you count QuickBooks Desktop users, that number rises to 8 million.
Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge. And if you need assistance, QuickBooks offers robust live customer support to help you along the way. Xero Established is a comprehensive plan for businesses managing multiple projects and tracking in-depth financials. It includes everything in Growing, plus multi-currency accounting, project costing and tracking, expense claims, and in-depth analytics.
Tax Support
You can create and send invoices, track expenses, reconcile bank accounts, and more, all from your smartphone or tablet. QuickBooks offers a more integrated suite of features compared to Xero. With features like automatic expense tracking, a user-friendly interface, and extensive reporting options, QuickBooks aims to streamline financial management for small businesses. 8 ways companies cook the books It’s particularly well-suited for businesses who prioritize an all-in-one solution.
Plans to suit your business
- As you can see, both QuickBooks Online and Xero have significant capabilities to offer small businesses.
- Add-ons include QuickBooks Payroll, which starts at $50/month plus $6/month per employee.
- For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero.
- QuickBooks Online takes the lead because it’s generally easier to use than Xero.
- As the QuickBooks Online plans increase in price, you receive additional features and capabilities with each level (that were not available in the previous level).
They may have almost the same features, but each has its own strengths and drawbacks. The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. Support network refers to a community of software users that can extend professional inventory rollback procedures help to businesses.
Xero Growing is designed for growing businesses, offering everything in Early, plus bill management tools, additional invoicing, and bulk reconciling transactions. Compare the features, pricing plans, and add-ons available with both QuickBooks and Xero to find the best accounting solution for your business. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month). This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team. QuickBooks contains more features and robust functionalities for growing businesses; FreshBooks offers a low-cost, easy-to-use option for freelancers.
Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills. 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. All three of these offer the ability to scale their accounting for larger businesses and both Xero and QuickBooks offer specific training for accountants.
