Neither software includes payroll—but you can add it on for a price. Xero partners with Gusto Payroll, and costs start at an additional $40 per month plus $6 per employee per month. Sage has its own proprietary payroll offering, Sage People Payroll, but pricing is customized based on your company’s specific needs. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business.
Xero’s accounting functionalities are fairly simple to navigate, so it’s likely these resources will be sufficient if and when something goes wrong. To make the decision a little easier, we’re comparing Xero and QuickBooks Online, side by side based on features, pricing, ease of use, and more. QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep. With Xero, you get access to built-in reports with highly customizable layouts.
How similar are Xero and QuickBooks?
QuickBooks also offers a number of tailored reports, including QuickBooks reports for nonprofits, which let organizations track their donations and finances with one tool. Xero’s raft of expensing abilities allows you to scan receipts to record and track expense claims, slotting each expense into the best category for a report. The Established plan also supports a multi-currency function, which converts 160 different foreign currencies into your business’s local currency. Learn more about how to automate Xero, or dive into these ready-to-use workflows for both apps. For example, Xero allows you to view accounting reports and specific budgets for any time period.
- Overall, Xero is an efficient and cost-effective way for small businesses to manage finances.
- This is the exact opposite of QuickBooks, which makes these tools available to all customers.
- If you’re running a small business with simple finances, you might be able to handle it all on your own with Xero.
- Speaking of the cloud, both software earned a spot on our best cloud accounting software list.
- While it claims it has 24/7 online support, what it really means is that it has an online community you can ask questions in.
Additionally, with QuickBooks Plus and Advanced, you can create custom reports. Across all pricing plans, you what is a marginal cost can also create custom tags for your reports. For example, you can’t use Xero to accept tips via invoices as you can with QuickBooks. On top of that, you can only convert quotes, not estimates, to invoices in Xero. 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.
Its data-entry screens are more minimalist than those of QuickBooks Online, and its invoice and billing entries require less in the way of data entry. For those moving their small business’ accounting over from another application, you can import data into QuickBooks Online using the Import Data function. Help is accessible from any data-entry screen, and a demo company is available for those who want to enter practice transactions without worrying about messing up their own data.
Customer Support: QuickBooks Online Wins
The main differences between Xero vs QuickBooks lie in features and pricing. Xero is more affordable than QuickBooks Online, always includes unlimited users, and offers inventory management and fixed asset accounting in all its plans. FreshBooks is a freelancer’s dream accounting software, as it comes with unlimited invoicing, estimates and time tracking. You can even set up recurring invoices each month, late payment reminders and scheduled late fees for overdue invoices. For tracking your expenses, FreshBooks’ base plan comes with mobile receipt scanning and bill line item capture. For more advanced features, such as accounts payable and accountant access, you’ll need to upgrade to a higher plan.
So, if you want a low-cost inventory management solution, go with Xero. Read our QuickBooks Bill Pay review for more details on the solution. You might prefer QuickBooks for invoicing and A/R management, and it earned a perfect mark in this category.
Xero has more (and better) accounting features for established businesses
FreshBooks doesn’t have native functionality to integrate with Xero. However, you may be able to use a third-party app, such as Zapier, to connect the two. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
Xero vs. QuickBooks Online: Features
This user review score helps us give more credit to software products that deliver a consistent service to their customers. Customer service is grant writing for dummies by beverly browning evaluated based on the number of communication channels available, such as phone, live chat, and email. Software providers also receive points based on other resources available, such as self-help articles and user communities. Finally, they are awarded points based on the ease with which users will find assistance from independent bookkeepers with expertise in the platform.
With Xero, you have to connect your account to reconcile your transactions. Choosing the right accounting software can ensure your small business manages its finances well. If you’re searching for the best accounting software, you might be on the fence between examples of key journal entries FreshBooks and Xero.
