Xero vs QuickBooks Compared: Is QBO or Xero Accounting Best?

Xero vs QuickBooks has been an ongoing debate among business owners and accountants for years. Both software options are popular for their accounting capabilities, but which is better?

QuickBooks Online (QBO) and Xero are two of the most popular accounting software options for entrepreneurs and small business owners. Each software has its unique features and advantages. 

In this article, we'll take a closer look at both and help you decide which one is the best fit for your business needs.

What is the difference between Xero and QuickBooks?

The main difference between QuickBooks and Xero lies in their approach to accounting software and the features they offer to businesses. While both platforms are popular choices for small and medium-sized enterprises, they have distinct differences that cater to specific needs. Here are some of the differences:

QuickBooks, developed by Intuit, is a comprehensive accounting software that has been a market leader for many years. It offers a wide range of features designed to streamline financial management tasks. QuickBooks provides robust bookkeeping tools, invoicing capabilities, and payroll management, making it an all-in-one solution for businesses. Its user-friendly interface and extensive integrations with other applications make it a popular choice for businesses seeking convenience and a seamless user experience. 

On the other hand, Xero is a cloud-based accounting platform that has gained significant traction in recent years. It differentiates itself by focusing on collaboration and accessibility. Xero provides real-time financial data, allowing users to track their finances from anywhere, at any time.

This cloud-based approach enables businesses to work closely with their accountants and advisors, promoting efficient collaboration. Xero also offers strong inventory management features, making it particularly appealing to businesses in the retail sector.

To get a more detailed perspective on Xero, you can read our Xero review, which delves into the platform's strengths and weaknesses. Additionally, comparing Intuit vs Xero will provide a comprehensive analysis of the key differences between the two accounting software options. 

While both QuickBooks and Xero offer similar functionalities, the choice ultimately depends on the specific needs and preferences of your business. QuickBooks may be a better fit for businesses seeking a comprehensive and feature-rich solution, particularly those in need of robust payroll management.

Xero, on the other hand, excels in its cloud-based approach, promoting collaboration and accessibility. For businesses that prioritize real-time data and inventory management, Xero may be the preferred choice.

Xero vs QuickBooks comparison chart

In this QuickBooks Xero comparison, we'll take a closer look at various aspects of these popular accounting platforms and rate each software over 10 to determine the winner. Let's dive into the details:

QuickBooks vs Xero pricing

QuickBooks and Xero offer different pricing plans to suit the needs of businesses. Xero allows new customers to sign up for a 30-day free trial and offers an optional add-on service called Gusto payroll. The monthly subscription for Xero are as follows:

1. Early Plan ($13 per month): Ideal for businesses starting out, it includes features such as sending quotes and up to 20 invoices, basic inventory management, and reporting.

2. Growing Plan ($37 per month): Designed for expanding businesses, it offers unlimited invoices, quotes, and bill entries, along with the ability to bulk reconcile transactions.

3. Established Plan ($70 per month): Geared towards established businesses, it includes features like working with multiple currencies, project tracking tools, claiming expenses, and advanced analytics for cash flow prediction.
 

QuickBooks pricing plans are as follows:

1. Simple Start ($30 per month): Suitable for small businesses, it offers basic features like tracking income and expenses, sending invoices, and managing cash flow.

2. Essentials ($55 per month): This essentials plan includes enhanced features such as bill management, time tracking, and synchronization with three sales channels.

3. Plus ($85 per month): With advanced features like inventory tracking, customized reporting, and project profitability evaluation, the plus plan caters to businesses with more complex needs.

4. Advanced ($200 per month): The advanced plan is designed for larger businesses, it provides additional features like customized financial performance monitoring, batch invoicing, and dedicated support.

Winner:

The winner between QuickBooks and Xero depends on the specific needs and budget of your business. However, Xero’s plans are the cheapest, suitable for self-employed and small business accounting operations.

QuickBooks vs Xero free versions

QuickBooks and Xero are two leading players in the market, offering free versions that cater to the needs of small businesses. Let's compare the features and benefits of QuickBooks and Xero free versions to help you make an informed decision.

QuickBooks has long been a popular business accounting software. It offers a user-friendly interface and a wide range of features, including invoicing, expense tracking, and tax preparation. QuickBooks lets you easily import and categorize bank transactions, making bookkeeping a breeze.

On the other hand, Xero accounting software is gaining traction for its cloud-based approach and accessibility. With Xero, you can access your financial data anytime, anywhere, from any device. The free version of Xero includes features like bank reconciliation, invoicing, and expense tracking, empowering you to stay on top of your business finances.

Winner:

So, which one is better? In terms of choosing a winner between the free versions of QuickBooks and Xero, it ultimately depends on your specific business requirements. QuickBooks Online Free Edition is great for simplicity and ease of use, while Xero Early offers a more robust feature set.

Customer support

Xero and QuickBooks both strive to provide excellent customer support, ensuring that users receive timely assistance when needed. Xero offers 24/7 email support, comprehensive online help resources, and a vibrant user community. Their support team is known for being responsive and knowledgeable, helping users navigate any challenges.

On the other hand, QuickBooks offers various support channels, including phone support, live chat, and a vast knowledge base. Their support team is renowned for being helpful and attentive, addressing user queries promptly. QuickBooks also provides an extensive library of video tutorials and webinars to help users maximize their software's capabilities.

Winner:

So, which software wins in terms of customer support? Well, it's a close call. Xero's round-the-clock email support and engaged user community give it an edge in responsiveness, while QuickBooks' diverse support channels and educational materials cater to various learning preferences.

Knowledgebase & learning

Xero and QuickBooks both understand the importance of education and offer extensive resources to help users learn and navigate their software effectively.

Xero provides a robust knowledge base with articles, guides, and video tutorials covering various topics, from getting started to advanced features. Their learning resources are designed to empower users to become proficient in using Xero for their accounting needs.

QuickBooks, on the other hand, offers a vast learning center that includes step-by-step guides, video tutorials, and interactive courses. Their resources cater to different learning styles, allowing users to choose the format that works best for them. QuickBooks also offers certifications for users who want to demonstrate their expertise in the software.

Winner:

So, which software comes out on top in terms of knowledgebase and learning? After careful consideration, the winner is QuickBooks.

The extensive learning center, coupled with its interactive courses and certification program, sets QuickBooks apart as a platform that is dedicated to helping users master their accounting skills.

QuickBooks vs Xero features & functionality

When it comes to accounting software, two names stand out: QuickBooks and Xero. Both platforms offer various accounting features and functionality to help businesses manage their finances effectively. 

Let's delve into the key aspects of QuickBooks and Xero, so you can make an informed choice:

Xero or QuickBooks for ease of use?

Xero offers a clean and modern interface that is easy to navigate. Its dashboard provides a clear overview of your financials, and tasks like invoicing and expense tracking can be accomplished with just a few clicks. Xero's user-friendly design makes it an ideal choice for those who are new to accounting software.

Alternatively, QuickBooks is renowned for its simplicity and ease of use. It features a straightforward setup process and an intuitive interface that guides users through various accounting tasks.

QuickBooks provides step-by-step instructions, making managing invoicing, tracking expenses, and generating financial reports easy. Even users with limited accounting knowledge can quickly become comfortable using QuickBooks.

Winner:

If ease of use is a top priority for you, QuickBooks emerges as the winner. Its intuitive design and user-friendly features make it an ideal choice for businesses of all sizes. With QuickBooks, you can streamline your accounting processes and focus on what truly matters—growing your business. Make sure to read more in our Quickbooks review.

Xero vs QuickBooks online versions

Xero or QuickBooks Online (QBO) are popular cloud-based accounting platforms used by businesses of different sizes because they are designed to provide flexibility and accessibility.

Xero boasts a user-friendly interface that allows users to navigate through various accounting tasks easily. It offers features such as invoicing, expense tracking, and bank reconciliation, all accessible from anywhere with an internet connection.

QuickBooks Online also provides a comprehensive suite of accounting tools with an intuitive interface. QBO offers a range of features tailored to small businesses, including invoicing, expense tracking, inventory management, and payroll functionality.

With QuickBooks Online, users can efficiently manage their financials while enjoying seamless integration with other business applications.

In this Xero accounting software vs QuickBooks Online comparison, both platforms have their strengths. Xero stands out for its simplicity and ease of use, making it an excellent choice for small businesses or those new to accounting software.

On the other hand, QuickBooks Online offers a comprehensive set of features that can cater to the needs of growing businesses.

Winner:

So, which online accounting software comes out on top? After careful evaluation, the winner is QuickBooks Online. Its extensive features, seamless integration capabilities, and industry reputation make it the go-to choice for many businesses. You can read more on the pros and cons of Quickbooks online in one of our articles.

Xero vs QuickBooks desktop versions

Xero's desktop version provides features such as invoicing, bank reconciliation, and financial reporting, empowering businesses to manage their finances efficiently. Xero's desktop software is known for its ease of use and accessibility, making it a popular choice among small and medium-sized businesses.

QuickBooks Desktop is also a powerful accounting solution with advanced functionality. It offers features like inventory management, payroll processing, and advanced reporting capabilities. QuickBooks Desktop provides a rich set of tools that cater to the specific needs of businesses in various industries.

Winner:

If you're seeking a desktop accounting solution, QuickBooks Desktop emerges as the winner in this Xero vs QuickBooks comparison. Its advanced features, customization options, and industry-specific tools make it the go-to choice for businesses that require in-depth financial management capabilities.

Mobile apps

Xero's mobile app offers a seamless and user-friendly experience, allowing you to stay connected to your business wherever you are. With features like invoicing, expense tracking, and bank reconciliation at your fingertips, Xero's mobile app ensures that you can effortlessly manage your finances on your android, iphone or tablet.

On the other hand, QuickBooks' mobile app provides comprehensive functionality, enabling you to handle essential accounting tasks while on the move. From creating and sending invoices to tracking expenses and capturing receipts, QuickBooks' mobile app empowers you to stay organized and in control of your finances from anywhere.

Winner:

When comparing Xero and QuickBooks mobile apps, both platforms offer convenience and accessibility. However, the winner in this Xero accounting vs QuickBooks comparison is QuickBooks. Its mobile app's robust features and seamless integration with the desktop version make it a top choice for businesses looking for a comprehensive mobile accounting solution.

Email tracking

With Xero's email tracking, you can receive notifications when your clients open and view your emails, giving you valuable insights into their engagement. This helps you stay informed and take timely actions to follow up on outstanding payments or address any concerns.

QuickBooks also provides robust email tracking functionality. By integrating with popular email service providers, QuickBooks enables you to track the delivery and opening of invoices, estimates, and other important communications. This ensures that you have real-time visibility into the status of your emails and can promptly address any communication gaps.

Winner:

While Xero provides solid email tracking functionality, QuickBooks emerges as the winner in this category. Its seamless integration with popular email platforms and comprehensive tracking capabilities make it the preferred choice for businesses seeking robust email tracking solutions. 

Integrations

QuickBooks also provides robust integration capabilities, allowing you to connect your financial data with an extensive selection of third-party applications. QuickBooks integrates seamlessly with payment processors, time-tracking tools, inventory management systems, and more.

These integrations enhance the functionality of QuickBooks, empowering you to automate tasks, improve efficiency, and have a holistic view of your business operations. You can take your business to the next level with additional integrations such as QuickBooks business checking account.

Xero also boasts a wide range of integrations with various business applications. From payment gateways (like your bank account and PayPal) and e-commerce platforms to project management tools and customer relationship management (CRM) systems, Xero offers a comprehensive ecosystem that connects your financial data with other vital aspects of your business.

Product limitations

When considering accounting software for your business, it's crucial to be aware of any limitations that may impact your operations. Let's delve into the product limitations of Xero and QuickBooks to determine which platform offers a better fit for your specific needs.

Xero, a leading accounting solution, provides a robust set of features; however, it does have a few limitations to consider. One key limitation is the inability to handle complex inventory management. While Xero offers basic inventory tracking, businesses with intricate inventory needs may find it lacking in advanced functionalities.

Additionally, Xero's reporting capabilities, although comprehensive, may not cater to the specific requirements of certain industries or businesses with complex reporting needs.

On the other hand, QuickBooks also presents a few product limitations. QuickBooks may not be as suitable for larger businesses with more extensive accounting needs. It has certain restrictions on the number of users and transaction volumes, which can pose challenges for rapidly growing enterprises.

Moreso, QuickBooks' user interface and navigation may not be as intuitive for some users, requiring a learning curve to leverage its capabilities fully.

Winner:

Considering the product limitations, the winner in this Xero accounting vs QuickBooks comparison depends on your specific business requirements. If you prioritize advanced inventory management or industry-specific reporting, QuickBooks might be the better choice.

Conversely, if you have a smaller business and value a user-friendly interface with robust features, Xero could be the ideal fit.

QuickBooks or Xero for startups

QuickBooks and Xero both offer a range of features tailored to the needs of small businesses. QuickBooks is widely recognized for its user-friendly interface and extensive functionality. It provides comprehensive tools for invoicing, expense tracking, and financial reporting, making it a solid choice for entrepreneurs seeking a well-rounded accounting solution.

Xero prides itself on its cloud-based accessibility and collaborative features. With Xero, entrepreneurs can manage their finances anytime, anywhere, and easily collaborate with their accountants or team members. Xero's intuitive interface and a strong emphasis on automation make it ideal for entrepreneurs who value simplicity and efficiency.

Winner:

So, which one is the winner? It ultimately depends on your specific requirements and preferences.

QuickBooks' extensive features make it a go-to option for entrepreneurs and freelancers seeking comprehensive accounting capabilities. Meanwhile, Xero's user-friendly interface and cloud-based accessibility may resonate better with entrepreneurs looking for a modern, streamlined solution.

Consider factors such as the size of your business, your industry, and the specific features that matter most to you. By evaluating your unique needs, you can make an informed decision that aligns with your business goals.

Is Xero better than QuickBooks? Key takeaways

When choosing between Xero and QuickBooks, the question of which one is better ultimately depends on your specific circumstances and needs.

Both accounting software solutions have their strengths and are widely used by businesses of all sizes. Let's dive into the key takeaways to help you make an informed decision.

Xero is known in the software accounting programs world for its user-friendly interface and robust cloud-based features. It offers easy accessibility, allowing you to manage your finances from anywhere, anytime. Xero's intuitive design and emphasis on automation make it an excellent choice for small businesses and entrepreneurs seeking a streamlined accounting experience.

QuickBooks is also recognized for its extensive functionality and comprehensive set of features. It offers powerful tools for invoicing, expense tracking, and financial reporting, making it a top choice for businesses that require a wide range of accounting capabilities.

To determine which software is right for you, consider your specific needs and circumstances. If you prioritize mobility and collaboration, Xero's cloud-based platform and user-friendly interface may be the ideal fit. However, if you require advanced features and a more extensive set of accounting tools, QuickBooks might be the better choice.

Furthermore, industry-specific needs can also play a role in your decision. Certain industries may have software integrations or specialized features that are better supported by either Xero or QuickBooks. Evaluate your industry requirements and research the compatibility of each software with your unique needs.