There are an overwhelming number of options if you search the market for cloud-based accounting software to support your growing business. We are here to present you the showdown, Quickbooks Online vs Xero. It will help you see which one suits your business best among two of the industry’s best providers.
A bird’s-eye view of QuickBooks Online and Xero comparison tells us that both perform many of the same functions. The two include invoicing, paying bills, and bank reconciliations. So, how would we measure their differences? We will check how easily the tasks are carried out in each program. Let’s dive in.
Quickbooks Online And Xero Comparison
- Invoicing
If you want to customize an invoice in Xero, there is no feature to do that internally. You will have to go to “settings” and then upload a template. To get over that shortcoming, you can have an invoice form in Excel to readily export it in the application. Other than that, sometimes you’ll need to add notes to an invoice that references terms, nature of the job, or just to say “thank you.” Xero doesn’t support this feature.
Quickbooks Online lets you customize invoices in its software. It allows you to upload a logo, choose colors, and rearrange the invoice’s layout, too. Moreover, this accounting software also provides boxes for little notes that appear when the invoice is sent via email or printed.
In Xero, the reminders on past-due invoices apply to all customers at seven days. Whereas in QuickBooks Online, payment reminders can be selected and applied individually.
So, we can see that the former is focuses on letting you accomplish tasks in fewer steps while the latter enables you to customize your experience.
- Billing
Paying a new bill in Xero is a work of ease. Under “purchases” you will find “accounting,” select “new,” then click “bill.” QuickBooks Online does the same task in a few more steps.
Expenses in Xero can be automated in the regular plan but, in Quickbooks Online, you will need a higher plan. In both programs, you can pay regular expenses — such as rent, electricity, or the internet. This is done through a recurring invoice which can save you time each month. However, setting them up in Xero is much hassle-free than in Quickbooks Online.
“Bills to pay” are shown right up front on the dashboard in Xero but, not in Quickbooks Online. It navigates differently.
We can say Xero is a better choice if you want to be at the top of your monthly bills. However, if you don’t have many recurring bills, Quickbooks isn’t bad either.
- Reports
All core financial statements can be customized in both Xero and QuickBooks Online, covering different aspects of your business. However, Xero also gives you an equity statement. It is a useful feature if your business has several investors. When you’re concerned that one owner may be taking too much out of the business, it will quantify those. On the other hand, QuickBooks Online focuses deeper into accounts receivable than Xero.
QuickBooks Online integrates basic payroll processing, like reports on total wages and payroll taxes, worker’s compensation, and employee details. Xero offers a wide range of reports, and it has built-in human resources functions.
If you are a small business, Xero is the one for you. For larger organizations, Quickbooks Online works great.
- Pricing
There is a big difference between Quickbooks online and Xero comparison when it comes to pricing. Xero’s Early plan makes you pay $9 per month, while QuickBooks Online’s Simple Start plan takes $20 per month out of your pocket. The former severely limit users’ access to the accounting software and the latter does that much less.
Xero’s price plan is for those who keep growing their business. At the lowest level, you still have to pay an amount. Quickbooks online provide much more accessibility even when you have just started. The highest plans of both stand at $60.
- User-friendliness
You won’t find the ease of use in Quickbooks Online. Just because it offers so much and you can do a lot with it, there is a learning curve to this accounting software. It takes longer to learn how to use Quickbooks Online because it has more capabilities and options.
Xero, on the other hand, has a very user-friendly interface. The functions are clearly labeled and it had a much simpler workflow. All processes in Xero require fewer steps and everything is presented on the dashboard.
It is totally up to you if you want more features or more usability for your business.
Conclusion
Quickbooks is a better choice if you’re looking for something more advanced and challenging. It is great for large companies with many investors. It can give your venture a perspective to make decisions.
However, If you need something that makes your day-to-day operation run smoothly in a small company, Xero is the one for you. It cuts the busywork and focuses on the fewer elements that are most important. Both are different only by a hair.
And if you need help choosing the best Accounting Software for your company, we can help you.
At Terra Business Solutions we will give you the expert advice you need in order to reduce your taxes in a safe and legal way.
If this is something you think might help you, you can schedule a call with us.
Without any commitment, we can hear your needs and identify if we can help you reach your financial goals through the management of your accounting processes and accurate tax planning.
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I hope this was helpful for you and as a business owner and you have been able to find the answers you needed.
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