Xero vs QuickBooks for Accounting Features, Fees, Support

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Its Online version allows up to 25 users at no additional cost, provided you’re paying for the Advanced plan. 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. Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits.

This disappointed us, but not as much as the narrow client payment options available. You can only accept payments via card or direct debit with Xero, boxing out clients who prefer newer technologies. QuickBooks is Intuit’s general accounting software, while QuickBooks Online (QBO) is specifically the cloud-based service. For QBO, you pay a monthly subscription rather than an upfront fee, and you get all the patches and software updates from Intuit.

  • However, despite Wave’s advantages, its overall offering is pretty basic and support tools leave a lot to be desired, giving it a 4/5 score overall.
  • It also includes a hub to view all projects, making the correct labor costs, payroll, and expenses for each easy to manage.
  • Another key difference between the two companies is the maximum number of users it allows.
  • This disappointed us, but not as much as the narrow client payment options available.
  • Whatever the current deal, users will need to skip their free trial to qualify.

We also recommend Xero if you’re seeking project profitability data alongside superior bill pay and expense management features. We found the platform’s profitability tools to be highly user-friendly. Your team’s tracked time and expenses power your profitability reports and give you all the necessary information to adjust inputs and minimize costs.

An accounts payable aging report is one of the best accounting reports you can run. It’s a great way to know how much money you currently owe vendors and how much you can expect to owe in the future. Our only QuickBooks bill-paying disappointment was that you can’t access the feature via the Simple Start package.

Security Features

We also like that Xero has an optional Gusto payroll integration for each platform at no extra cost. By allowing you to capture bills and receipts via Hubdoc, scan files using email or mobile apps, and store documents online, Xero also provides real-time views of cash flow reports. One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees. The software is also updated automatically, so businesses always have the latest features and security patches.

  • QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing.
  • QuickBooks also offers a number of tailored reports, including QuickBooks reports for nonprofits, which let organizations track their donations and finances with one tool.
  • Because QBO tracks different taxes in separate ledger accounts, you can use your balance sheet to see amounts owing to each tax authority.
  • When we tested Xero, this seamless integration powered the entirely automatic updating of our accounting records when we ran payroll through Gusto.
  • You can also take photos of receipts and upload them from the mobile app.

With a research score of 5/5 for software attributes and 5/5 for its accounts receivable features, the complimentary software gives Quickbooks and Xero a run for their money too. However, despite Wave’s advantages, its overall offering is pretty basic and support tools leave a lot to be desired, giving it a 4/5 score overall. With this in mind, if you’re after feature-rich software and can afford to pay a slight premium, QuickBooks and Xero will be more reliable options. Xero and QuickBooks are two of our best-rated accounting tools, but Wave is undoubtedly the safest bet for businesses watching the bottom line. 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.

Xero vs QuickBooks: Which Is Right For Your Business in 2024?

Xero’s reporting tools impressed us overall, even though other platforms include a wider variety of reports. The platform’s reporting suite is among definition and important components of the balance sheet the most powerful we encountered while reviewing accounting software. QuickBooks offers more invoicing tools and client payment options than Xero.

Free Tools

Xero uses a very structured setup process, which is great for those who like to have everything in place prior to starting work. You can enter as much or as little information as you need, and simply add the rest when it’s necessary. You may never need to call support, but it’s nice to know it’s an option.

Invoicing

Similarly, all of Xero’s plans are often 50% off for the first three months. This means that Xero Early may be as cheap as $6.50 per month when 50% off, while QuickBooks Simple Start would cost just $9 a month, provided it is offering the same deal. Still, if your business relies heavily on other software services, Xero is a better bet then QuickBooks for making them all work together and ensuring everything is easily accessible. The vendor offers a guide to manual journals to help you get started.

Neither QuickBooks or Xero offers a permanent free plan, but if that’s what you need, we have a guide to the best free accounting software. That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary. At different seasons of the year, QuickBooks plans have been between 50% and 70% off for the first three months. Whatever the current deal, users will need to skip their free trial to qualify. You can also use QuickBooks to schedule payments in advance, including partial bill payments.

Across all pricing plans, you can also create custom tags for your reports. As the leading business accounting software platform, QuickBooks is unsurprisingly a standout when it comes to integrations. 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. For example, when you purchase the Pro Plus Desktop plan, you can have up to three concurrent users but each of those users must pay for their own account (at $349.99 each per year).