Xero vs QuickBooks Online: Features Comparison, Pros, Cons
Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge. And if you need assistance, QuickBooks offers robust live customer support to help you along the way. Xero Established is a comprehensive plan for businesses managing multiple projects and tracking in-depth financials.
Do Xero and QuickBooks both have fixed asset management features?
First, it’s worth noting that when comparing QuickBooks Online vs. Xero, there are certain areas in which it’s particularly difficult to say that one platform offers greater benefits than the other. To do this in Xero, you’ll need to run the report for the last month in the period, and then choose to compare it with the previous 11 months. In short, the direct method means you subtract the money you spend from the money you receive. The indirect method, on the other hand, uses your net income and factors in depreciation to calculate your operating cash flow. The method you prefer will depend on how your business operates, however, it’s important to know that Xero only accommodates the direct method.
Another option for QuickBooks Online users is finding an independent QuickBooks ProAdvisor for assisted bookkeeping. You can search the online directory to locate financial professionals who specialize in working with your industry. Xero does offer Xero Advisors, but the QuickBooks ProAdvisor network is much larger. QuickBooks Online came out on top for several features, ease of use, and customer support among others, but Xero wins in pricing.
When accountants transfer monthly reports into a spreadsheet to analyze and project, they’ll need to reverse the order of the columns—which isn’t an easy task. As two of the most popular accounting software solutions out there, Xero and QuickBooks Online actually have some overarching similarities. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
Do I need accounting software for my small business?
Our first-hand experience, guided by our internal case study, helps us understand how the different products compare with each other and how they work in real-world scenarios. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights.
This can be helpful if your company is growing fast, or you simply want the reassurance that there’s no limit to how many people can be part of the team. This being said, Xero’s 24/7 online support is notable as it allows you to receive support quickly and easily, whenever you need it. If you’re having an issue with your accounting software (managing one of the most important facets of your business) it’s preferable to receive support as fast as you can, in the most accessible way possible. Finally, comparing QuickBooks Online vs. Xero, Xero stands out with their customer service.
- However, while Xero allows for unlimited users, QuickBooks Online lets you have only up to 25 total seats, depending on the plan you select.
- In both Xero and QuickBooks Online, you can set up your products and services and map them to the appropriate accounts in your chart of accounts.
- Xero offers simple inventory tracking software that can track up to 4,000 finished items.
- From CRM systems to payment processors, QuickBooks integrates with a wide range of popular platforms, saving you time and effort.
How many users can access Xero?
When you link up your Xero account to download transactions from your bank, you have to set up the right starting balance per the bank. From that point, your balance per bank is a calculated balance—this calculated balance can be manipulated, meaning it can be incorrect. Although the “adding account” feature within Xero may be a small issue, it also should be noted that Xero has a nuance for bank balances as well. If you need to add a new account—say because this is the first time you’ve paid for a product or service—Xero and QuickBooks Online differ.
Lastly, our expert opinion score is our subjective rating based on our experience in trying the software. QuickBooks Online leads in many categories, but Xero has some slight advantages in terms of fixed asset management, project accounting, and taxes. We tackle these differences between Xero and QuickBooks in detail in the following sections.
Therefore, let’s start our Xero vs. QuickBooks Online comparison by breaking down each solution individually. Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for days inventory on hand ratio various consumer publications. Yes, you can use Xero to track inventory, and the feature is available in all plans.