QuickBooks vs Xero 2024: Which Software Is Better for You?

While this, again, can come down to user preference, present value of a single amount I like the ability to just jump in and get started. One of the major differences between Xero and QuickBooks Online is the setup process. A 50% discount will be applied to the above prices for the first two months. One of the things I like about this Xero alternative is the fact that you can place your cursor over one of the categories listed in the vertical menu to see what features are available in that category. If you just want to get started and add things as you go, Xero may not be for you.

Alternative Accounting Software Options

Elite also adds tax penalty protection, and a dedicated pro to help set up and troubleshoot. This is because QuickBooks offers an add-on specifically for time tracking, starting at $20 per month (plus $8 per user), while Xero bundles time tracking with its main service. QuickBooks and Xero both offer a lot of features, including all the core abilities that make these two options the best small business accounting software around. 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. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections.

1. The first two plan tiers put a limit on billable clients, but not on invoices.
2. This pared-down menu makes it easy for new users to find their way around the application without too much trouble.
3. The software must have enough reports that can be generated with a few clicks.
4. For QuickBooks Online, optional one-time bookkeeping setup is $50.00.
5. Premium includes scheduling for jobs and shifts, real-time reporting, custom alerts, and time-off management.

With a user-friendly interface and a comprehensive suite of tools, QuickBooks streamlines tasks like invoicing, expense tracking, and reporting, giving you a clear picture of your financial health. From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs. 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.

Xero vs. QuickBooks Online: Ease of use

We looked into the positive and negative feedback of both software, and we found that they received a fair share of praise and complaints. You will receive an email message with instructions on how to reset your password. For more information, see our full Xero accounting review as well our list of the top Xero accounting alternatives.

Project and time tracking

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. This cloud-based solution also supports cash-basis and accrual accounting methods and uses double-entry accounting. It has solid mobile apps, and it has a large number of integrations, although it falls a bit short of Xero. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit. Xero is a better option for businesses that need to track project profitability.

By providing feedback on how we can improve, you can earn gift cards and get early access to new features. Xero does not have its own administrative costs in accounting: definition and examples in-house payroll software, but it does integrate with Gusto. If you invoke the guarantee, QuickBooks will conduct a full n evaluation of the Live Bookkeeper’s work. QuickBooks might be better suited for those prioritising ease of use and extensive integration options.

While neither provider allows you to file a sales tax return, Xero’s features allow for more accessibility when it comes to sales taxes. QuickBooks Online didn’t always have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced. Now, just like Xero, QuickBooks Online allows you to record a fixed asset purchase, track the asset, and calculate depreciation. Read our QuickBooks Bill Pay review for more details on the solution.

Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. We believe everyone should be able to make financial decisions with confidence. QuickBooks has an online portal that users with common problems can check to resolve any issues without involving customer support. It includes articles and videos, grouped by the type of QuickBooks product, and further broken down into categories such as ‘Account Management,’ ‘Taxes,’ and ‘Sales and Customers,’ among others. Video training courses, a blog, and a community forum are also available.

Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization with its mobile app as well as the online version. A 30-day free trial is available for those who want to test the software before committing and you can get big discounts on all of the above plans for the first six months, bookstime review with a monthly fee from £1. While QuickBooks Desktop was accessible offline, the company discontinued all Desktop services for UK customers in 2023.