Xero’s main entry screen uses a menu bar at the top of the screen for access to system functions. This pared-down menu makes it easy for new users to find their way around the application without too much trouble. You’ll rarely be asking yourself how to use QuickBooks Online as they offer plenty of guidance throughout the application; users can click on the question mark anytime they need assistance. All of these things can cause extreme frustration, and you’ll need the assistance of product support to solve these problems.
- We recommend converting your book after the quarterly or yearly book is reconciled.
- Xero Projects lets you set up your project in minutes and helps you allocate various tasks and expenses for your project.
- QuickBooks and Xero are popular accounting software platforms for small businesses.
Plus, you get bill pay tools no matter which package you choose, although you can only pay five bills per month with the Early plan. Of course, the best solution for you depends on your organization’s custom needs and preferences. We recommend trying both tools for free for 30 days before settling for one. If neither tool meets your needs, we welcome you to explore our comprehensive reviews of the best payroll software for small businesses or our top-rated payroll software for enterprises. 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.
For example, you can give all employees the ability to send quotes and invoices, allow some to enter expenses and limit who can see the company’s complete financial picture. To keep things organized, Xero logs every action users make and compiles the history of every transaction. Xero has automatic bank feeds, which means that all you have to do is make the initial connection between the software and your bank. After that, the data will be updated automatically every business day. There are no manual uploads needed, and you can set up secure, encrypted feeds from any number of different bank accounts.
Quickfire round – Xero versus QuickBooks
You will get a location or timer-based tracking solution to manage your costs. Xero Projects lets you set up your project in minutes and helps you allocate various tasks and expenses for your project. More specific categories – Business, Accounting, Payroll, Projects, and more – have their own dashboards, accessible with a horizontal sidebar.
- Once payment is received, Xero will automatically apply the payment if paid online, or you can process the payment during your regular bank reconciliation process.
- We liked that these reports are interactive, which makes it easier for us to measure key performance indicators (KPIs).
- The software is known to be sleek and user-friendly and is even described by some as beautiful — an impressive achievement for an accountancy tool!
- 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.
- Both services will allow you to modify your main dashboard to display the stats that matter most to you, but QuickBooks offers a little more flexibility.
- You can add Gusto payroll to any plan for an extra $40 per month, plus $6 per month per person.
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. You can cancel anytime, you’ll get 24/7 support during your trial, and your prices don’t change based on whether you pursue the trial. We like this level of accommodation — it’s rare and highly beneficial among the many free trial offers we’ve encountered while reviewing business software.
Accounts on the go
Unlike Xero and QuickBooks, businesses can get started on Wave for completely free and the software is also available to an unlimited number of users — extending its use even further. Like QuickBooks, Xero has a function to automatically calculate sales taxes for each invoice, as well as state or city taxes. A tax default can be set for any purchase, and Xero offers an integration with Avalara TrustFile in order to help you file your returns. Xero’s software also lets you map your accounts to different categories of tax form, keeping everything organized. With QuickBooks, you can even take photos of your physical receipts, which the software automatically matches to existing expenses. Transactions can be imported from bank accounts, credit cards, or third-party services like PayPal and Square.
FreshBooks is one such option that has gained popularity in recent years. It’s designed specifically for small businesses and offers invoicing, time tracking and expense management. This is because QuickBooks was designed for small businesses that might not have an accounting background, whereas Xero was designed with accountants and bookkeepers in mind.
Want to learn more? Check out the latest courses in Xero Learn.
Automating day-to-day tasks can make any business more efficient, and Katana’s cloud inventory software is designed to do just that. When you combine the power and advantages of our software with the accounting abilities of Xero or QuickBooks it’s a match made in heaven. The cloud-based system is a good fit for small businesses, and, crucially, it is also great for growing businesses as the application is designed to grow with you. Hevo Data provides its users with a simpler platform for integrating data from 100+ sources such as Xero and Quickbooks for Analysis. It is a No-code Data Pipeline that can help you combine data from multiple sources. You can use it to transfer data from multiple data sources into your Data Warehouse, Database, or a destination of your choice.
Unlimited users for a low cost
It’s tempting to go for the cheapest plan, but this could mean having to pay extra for the add-on features your business needs. If you pay VAT, work with suppliers or are a growing business, you can take your pick from Essentials (up to 3 users) overview of key elements of the business or Plus (up to 5 users). The features list grows with the monthly subscription cost, and you can bolt-on extra services such as Payroll for a small extra monthly fee. Compared to QuickBooks, Xero’s time tracking features are easy to use.
Xero at a glance
The method you choose will be determined by the nature of your Business; nevertheless, it’s crucial to note that Xero only supports the Direct way. The Bank Balance should ideally be pulled straight from the bank, therefore Xero’s Bank Feed features aren’t as appealing as QuickBooks Online’s. You must return to the Chart of Accounts, add the account, and then come back and add the Transaction from Online Banking. Xero and QuickBooks Online differ when it comes to Adding a New Account.
Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users.
This helps you discuss financial and business data with your team, which allows them to submit expenses, send invoices, and manage leave. 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. The Early subscription is tailored for solopreneurs and business owners who are just getting started.