Xero vs QuickBooks Online: Features Comparison, Pros, Cons

Xero is more affordable and scalable than QuickBooks since all subscriptions have unlimited users. If you have a microbusiness and only need to manage and track a few bills and invoices, then you might do well with Xero’s Early plan. However, if you work with multiple vendors and customers and need more enhanced features, you should consider QuickBooks Online’s Plus tier. Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit.

Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. This doesn’t mean what financial ratios are best to evaluate for consumer packaged goods QuickBooks Online is the right choice for all businesses, though.

Start using Xero for free

1. QuickBooks offers a main dashboard that can be customized with a series of tile-like graphs or lists, which lets you see real-time KPIs at a glance.
2. If you’re outside North America, you can access country-specific payroll as an add-on in some regions, including the UK.
3. All plans currently have a 95% off promotion for the first three months.
4. 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.
5. 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.
6. Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.

Discounts are available for nonprofits and users that own multiple businesses. However, the software itself is difficult to learn if you don’t have prior accounting experience, so it isn’t the best choice for beginners. Around the world, people use Xero to manage their business finances and maintain their financial health. Thanks to Xero’s comprehensive features and seamless integrations with other business apps, you can customize Xero to your specific needs – no matter the industry.

Flexible financial management tools

Each time you log into either app, you can see your latest balance and expenses that need reconciling from the dashboard. Plus, Xero staffers can call people back to discuss their cases over the phone, giving you that phone support you need, albeit in a roundabout way. In sharp contrast with QuickBooks’ extensive language support, Xero does not offer support for languages other than English.

With this in mind, if you’re after feature-rich software and can afford to pay a slight premium, QuickBooks and Xero will be more reliable options. Unlike QuickBooks, Xero users do not have any phone support options. To get it, you’ll just need to log in, visit Xero Central, and submit a query. You can then track its progress through a section called “My cases,” which details which specialist is working on it, the current status, and expected response time. QuickBooks offers a main dashboard that can be customized with a series of tile-like graphs or lists, which lets you see real-time KPIs at a glance.

How Xero stacks up against other software

And if you’re looking for more expert advice on running your business, find an advisor through the Xero Advisor Directory. Build a thriving property business with mobile expense tracking and numbers at a glance. See cash flow at a glance, customize reports, and track profitability in real time. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. More than 750 app integrations, including live, in-house bookkeeping. Danielle Bauter is a writer for the Accounting division of Fit Small Business.

This makes it the best accounting software we’ve researched and helped it to edge out Xero in this round. The QuickBooks Advanced plan costs $200 per month, supporting 25 users. While Xero and QuickBooks Online have a lot in common (i.e., advanced features and numerous integrations), there are a few features that separate the two. Xero comes out on top for its support of unlimited users at no additional cost — something that is pretty much unheard of in the accounting software world.