Xero Vs. QuickBooks – Which Accounting Software is Right for Your Small Business?
QBO and Xero have mobile accounting apps that let you track your business’s cash flow, reconcile bank transactions, send invoices, create quotes, and more. However, Xero has more robust project management capabilities through its standalone app, WorkflowMax. Both programs offer a variety of integrations and add-ons. But which one is right for you?
Cost
While both software products have reasonable pricing models, QBO stands out regarding scalability. The platform features four different plan options that offer increasing levels of functionality for businesses of all sizes. Additionally, the platform provides assisted bookkeeping services if you need help with critical accounting tasks. The platform also features more integrations than Xero. While Xero has over 700 third-party integrations, QuickBooks Online only offers a few hundred. These include payment acceptance apps like PayPal and Stripe, CRM systems, project management tools, e-commerce platforms, point-of-sale applications, and time-tracking solutions.
In addition, Xero’s flexibility in reporting customization sets it apart from QBO. Xero’s interface allows small business owners to customize reports by date, user, or account, while QBO limits report customization options to only a few select parameters. Additionally, Xero’s support team is more responsive to questions than QBOs, which can be helpful if you encounter any issues.
Customization
Xero offers a variety of customization options to fit your small business’s unique needs. It also provides a mobile app and integration options for various third-party tools. While QuickBooks also provides extensive customization, it offers fewer integration options. Regarding Xero vs Quickbooks, both are web-based accounting programs, which means you can access your financial data from any device with an internet connection. Both offer multiple plans on a monthly subscription basis, with software capabilities increasing with higher plan levels. Xero’s customer support is available 24/7, whereas QuickBooks only offers phone support Monday through Friday and from 6 a.m. to 3 p.m. PT on Saturdays.
Additionally, Xero offers fixed asset management, while QuickBooks only allows users to record an expense but not calculate depreciation. Depending on your industry, this difference may be important to consider. In addition, both Xero and QuickBooks provide a free 30-day trial for new customers. This can help you determine which platform is right for your business before committing to it.
Reporting
Xero offers a variety of reports that cover different aspects of your business. These include financial statements, management reports, and inventory analysis. In addition, Xero has a mobile app that lets you record expenses and payments on the go. While Xero has many features that can help small businesses, it also has limitations. These include a limited number of accounts payable and invoicing transactions, which can be problematic for larger companies. In addition, Xero’s user interface can be challenging for new users.
Nevertheless, Xero has much to offer, including reasonable pricing plans and a wide range of integrations with third-party apps. Additionally, Xero’s support is available 24/7 online and has fewer customer service wait times than QuickBooks. However, if you’re looking for advanced inventory management or industry-specific reporting, QuickBooks may be a better choice for your company.
Expense Tracking
Both Xero and QuickBooks have extensive capabilities to offer small businesses. They have reasonable pricing, a user-friendly interface, mobile access, and many other features. However, the best platform for your business depends on your unique needs. Regardless of your chosen venue, you will need help getting started and using it effectively. Both Xero and QuickBooks offer robust support and educational resources. While Xero’s round-the-clock email support and engaged community forum give it an edge in responsiveness, QBO’s diverse support channels and educational materials cater to users with different learning preferences. One drawback of Xero is that its monthly reports are arranged in reverse chronological order, which can be challenging for accountants. It also lacks a clear “uncleared transactions” report, which accountants frequently run to view accounts receivable and payable balances by customer or vendor. This is easy to do in QBO, where the information is accessible from the Accounts Receivable or Accounts Payable sections.
