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

Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units. They’ll help you reconcile your bank and credit card statements and prepare dividend tax rate monthly reports. QuickBooks Online didn’t always have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced.

How QuickBooks Online can help your business differently

QuickBooks offers receipt and document organization with its mobile app as well as the online version. Build a thriving property business with mobile expense tracking and numbers at a glance. Send invoices, automate reminders and so much more from the comfort of your desktop or mobile app. Accounts & Legal Consultants shared how Xero successfully managed the accounting for one of their large clients with 50 stores in the UK. Xero told them that the soft limits for transaction volume are around 2000 sales, 2000 purchases and 4000 bank lines per month, after which Xero’s performance “deteriorates dramatically”. Even though Xero offers a tempting $9/month plan, the reality is that it’s too restrictive for anything but the smallest side hustles that need less than five invoices and bills per month.

Plans to suit your business

1. We’ll explain our Xero vs QuickBooks comparison findings in greater detail in the following sections.
2. In this article, we compare their core features, pricing and pros and cons to help you decide which one is the right accounting software for your company.
3. We have apps for payments, payroll, reporting, project management, and more.
4. Its features include invoicing, bank reconciliation, expense tracking, and reporting.
5. We’ll compare their essential accounting features, pricing, integrations and more to help you choose the right accounting software for your needs.

Both providers allow you to record adjusted journal entries, modify your chart of accounts, and provide accountant access. However, while Xero allows for unlimited users, QuickBooks Online lets you have only up to 25 total seats, depending on the plan you select. We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements. 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. Note, each QuickBooks Live offering requires an active QuickBooks Online subscription and additional terms, conditions, limitations and fees apply. For more information about services provided by how to double your money Live Bookkeeping, refer to the QuickBooks Terms of Service.

A/R Management: QuickBooks Online Wins

The main limitation of QBO’s Essentials is access for only one user. As with QuickBooks, you can use Xero to automatically import and categorize expenses. Other mutual features include receipt photo upload, mobile app mileage tracking, expense reporting and adding billable expenses to client invoices. The solution’s comprehensive and user-friendly invoicing and reporting features impressed us. Along with essential invoicing features, you get access to the vast QuickBooks network — if your clients use QuickBooks, transactions are especially easy. QuickBooks also includes over two dozen prebuilt reports; custom report functionality is available in the highest tier.

QuickBooks also includes impressive unique accounting tools, including adding outstanding balance amounts to client payment reminders. You can also automatically record and match customer payments, accept tips via invoices, and split estimates into several invoices. We like that the latter feature, which isn’t common in accounting software, boosts cash flow for businesses operating on estimates. Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances. While the two both common inventory dividend distributable — accountingtools offer similar features, such as tax management, financial reports, integrated payroll, inventory and file storage, the two are not without their differences.

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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. This frees up the cash you need to make the timely bulk payments that Xero facilitates. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance. Xero and QuickBooks are both great accounting software options for small businesses.

You can send invoices and quotes, enter bills and reconcile bank transactions for $30/month. With Quickbooks, expenses functionality is built into all plans rather than offered as an add-on (or gated behind higher plans) as with Xero. This can mean some small cost savings and extra simplicity if you have a small business. The chart of accounts is easy to manage, customize and track spend for each category. The platform’s reporting suite is among the most powerful we encountered while reviewing accounting software.

Each time you log into either app, you can see your latest balance and expenses that need reconciling from the dashboard. QuickBooks has been in the market for longer than Xero, is very well-developed, and is generally loved by accountants – especially in the US market, which QBO has dominated. QBO claims that customers find on average $3,534 in tax savings per year.