Xero v QuickBooks Online 2023 Feature Comparison

With Xero, you can view the number of items you have available and see the total value of stock on hand for any item. Its inventory management reports will show you how well different items are performing and which ones are the most profitable. And you can also easily add inventory Items to quotes, invoices and https://quickbooks-payroll.org/ purchase orders to make billing easy. The app has a built-in timer you can use to record time as you work, or you can use the location-based job tracker through the mobile app. Xero also allows you to create a project or job, track time to add to it and add details to invoices when you’re ready to bill clients.

However, if you want a more scalable solution with the option to hire additional services like payroll and tax filing, then Xero is the more suitable choice. Both have great A/P features, but QuickBooks Online is slightly better due to its ability to generate recurring payments. Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically. The Report Center in QuickBooks Online offers a central location to process reports, which include all standard financial statements as well as a healthy selection of management reports.

It also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. accounting for a retail store: an ultimate guide for your store Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. Chargebee provides integrations with both Xero and QuickBooks, allowing you to automate your SaaS accounting with your preferred accounting solution.

Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users. This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users. It’s also less expensive than QuickBooks Online and a bit easier to use, thanks to its customizable dashboard and simple layout. The QuickBooks Online app promises to help you log miles, create invoices, maintain finances and cash flow, and track your profit and loss reports.

  1. The bookkeepers work across a variety of industries and during a consultation, QuickBooks Online will try to match you with a bookkeeper who knows your industry well.
  2. You can also use the QuickBooks mobile app to track mileage and run expense reports and cash flow statements.
  3. On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors.

QuickBooks offers more reports than Xero, plus you can create custom reports and tags. You’ll still be in a good position for reporting if you go with Xero, but QuickBooks is the superior choice if reporting is your priority. With Xero, you get access to built-in reports with highly customizable layouts. We liked that these reports are interactive, which makes it easier for us to measure key performance indicators (KPIs).

Get modeling, forecasting, and scenario planning all in one tool.

For example, QuickBooks integrates with Square, Gusto, PayPal, eBay, Shopify and Etsy. You can cancel anytime, you’ll get 24/7 support during your trial, and your prices don’t change based on whether you pursue the trial. We like this level of accommodation — it’s rare and highly beneficial among the many free trial offers we’ve encountered while reviewing business software. We also like that Xero has an optional Gusto payroll integration for each platform at no extra cost. Explore our list of accounting software solutions or request a free consultation with one of our software experts.

A/P Management: QuickBooks Online Wins

Other shared features include recurring invoices, one-click client payments and mobile invoicing. We found all these features to be user-friendly in Xero, and we were happy that they are available to all users. Perhaps our favorite Xero bill pay feature is that you can use the platform to schedule batch payments for one or many vendors.

Our only QuickBooks bill-paying disappointment was that you can’t access the feature via the Simple Start package. If the most affordable QuickBooks solution is your priority, you forgo the ability to pay bills through your software. You can also use QuickBooks to schedule payments in advance, including partial bill payments. We were impressed with this flexibility — you can make appropriate payments for your current cash flow. QuickBooks seamlessly integrates with Square, an excellent POS system for small businesses.

How We Evaluated Xero vs QuickBooks Online

You can also add custom invoicing details to your contact record, such as whether the customer is exempt from sales tax. Your business probably has a long list of contacts like customers and suppliers. Contact management systems help you keep track of their information. Inventory management features help you track and manage the items you have in stock.

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. 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. 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.

Additionally, you can create explicit rules to help QuickBooks correctly classify transactions automatically. 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. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances. For those on the go, Xero has a mobile app accounting tool for both iOS and Android devices, though the app does not give you access to all of the features found in the full version.

Xero is similar to QuickBooks Online, but has a thinner reporting section which does not always load reliably. QuickBooks and Xero include many of the same features, though QuickBooks is more feature-rich overall. That said, Xero’s bill pay tools outperform those in QuickBooks at lower prices than QuickBooks’ two highest-end pricing packages.

Maximum Users

The invoices option in Xero displays a nice summary view of all invoices and their current status. Both Xero and QuickBooks Online are optimized for small to mid-sized businesses, so large enterprises with more complex requirements may struggle to tick all of their boxes. Kelly Main is staff writer at Forbes Advisor, specializing in testing and reviewing marketing software with a focus on CRM solutions, payment processing solutions, and web design software. Before joining the team, she was a content producer at Fit Small Business where she served as an editor and strategist covering small business marketing content.

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