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

Back in the early 2010s, QuickBooks Online was criticized for its old-school user interface. Things have changed since then, however, and competitors like Xero have pushed QBO to rethink its user-experience. If you’re looking for a QuickBooks alternative, Xero is one of your best options. QuickBooks has been GAAP and IAS compliant for longer than Xero, and has been the preferred choice of many accountants for some time.

Along with essential invoicing features, you get access to the vast QuickBooks network — if your clients use QuickBooks, transactions are especially easy. QuickBooks normal profit meaning also includes over two dozen prebuilt reports; custom report functionality is available in the highest tier. We like how much power QuickBooks gives you over your monetary data. QuickBooks is an accounting industry leader, so its app integrations are exceptionally diverse and high-quality. One of the most important features any accounting tool can offer is integration with your business bank accounts. Ideally, you’ll want all your transactions flowing seamlessly into the software, with regular updates helping you keep on top of your cashflow.

As we talked about earlier, QuickBooks is a great low-cost choice for freelancers and small businesses, while Xero is popular with growing startups. Each time you log into either app, you can see your latest balance and expenses that need reconciling from the dashboard. QuickBooks and Xero both have excellent dashboards that give you an easy glimpse of all of your main business metrics after logging in. Your best option here will probably come down to the user interface you enjoy using most. QuickBooks Online and Xero both have a large collection of integrated apps, which should be enough to cover your business automation needs. QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep.

1. So, if you want a low-cost inventory management solution, go with Xero.
2. 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.
3. QuickBooks Online takes the lead because it’s generally easier to use than Xero.
4. With QuickBooks, you must reimburse employees outside the platform.
5. We also weighed factors such as pricing, user experience, customer service and integrations.

If you pay VAT, work with suppliers or are a growing business, you can take your pick from Essentials (up to 3 users) 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. Xero acts as a central hub for your accounting, and by integrating apps and tools, you can see all your financial how to read a 10 information in one place.

QuickBooks Online Reviews

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. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support. Xero Growing is designed for growing businesses, offering everything in Early, plus bill management tools, additional invoicing, and bulk reconciling transactions. Seamlessly connect QuickBooks to your favorite apps and tools, creating a unified hub for your business operations.

You’re our first priority.Every time.

It’s easy to see why QuickBooks is a standout choice for small-to mid-size businesses. Its intuitive interface, robust feature set, and readily available customer support make it a comprehensive and user-friendly solution designed to help grow—and scale with—your business. Compare the features, pricing plans, and add-ons available with both QuickBooks and Xero to find the best accounting solution for your business. Our range of simple, smart accounting software solutions can help you take your business to the next level.

Inventory management

We like that QuickBooks offers extensive features in each pricing package. We also like that QuickBooks is transparent about features and pricing online. Unlike some other vendors, QuickBooks leaves no questions about what you get for your dollar. A Live Bookkeeper cannot begin cleaning up your past books until they receive the required supporting documentation, which your bookkeeper will request perpetual inventory definition from you after your first meeting.

In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month. Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc. 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. We also like that Xero has an optional Gusto payroll integration for each platform at no extra cost. QuickBooks and Xero are among the best accounting software platforms for small businesses.

This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account. Xero is ideal for businesses that keep a team of bookkeepers or accountants in-house. 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. It’s particularly well-suited for businesses who prioritize an all-in-one solution.