Xero vs QuickBooks Online: Features Comparison, Pros, Cons

QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $35 per month while the only current Desktop version, Enterprise, must be paid annually and start at $1,922 per year. The main limitation of QBO’s Essentials is access for only one user. Depending on several factors, including the size of your business and the type of business you run, either QuickBooks or Xero will be your best choice.

Xero VS QuickBooks Online: Pricing Comparison

Speaking of pricing, QuickBooks Online operation and maintenance expenses definition can get a little expensive and may be out of budget for smaller businesses looking for a more cost-effective accounting solution. First-time QuickBooks customers can choose to explore QuickBooks without committing to a plan by signing up for a 30-day free trial. You can also skip the free trial in favor of locking in 50% off for your first three months — but you can’t choose both. That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary. At different seasons of the year, QuickBooks plans have been between 50% and 70% off for the first three months.

Which Is Best For My Business: Xero Or QuickBooks Online?

This user review score helps us give more credit to software products that deliver a consistent service to their customers. QuickBooks Online didn’t always have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced. Now, just like Xero, QuickBooks Online allows you to record a fixed asset purchase, track the asset, and calculate depreciation. Read our QuickBooks Bill Pay review for more details on the solution. We declared this category a tie because Xero and QuickBooks Online aced it. Both providers allow you to record adjusted journal entries, modify your chart of accounts, and provide accountant access.

1. One of the most important features any accounting tool can offer is integration with your business bank accounts.
2. This includes the ability to accept payments, view reports, and assign expenses to customers or projects.
3. QuickBooks goes beyond accounting with 750+ integrated apps, streamlining everything from payroll to customer relationships.
4. QuickBooks Online didn’t always have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced.
5. For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero.

Xero is a better solution for large and growing companies that don’t want a cap on the number of users needing access to the software. On the other hand, Quickbooks is a favorite small business accounting software for companies that need to be able to outsource their bookkeeping to a hired accountant. If you upgrade to at least the Essentials plan from QuickBooks, you can enter employee time by client or project and automatically add that time to invoices. For more robust scheduling and PTO management, you’ll need to purchase the separate QuickBooks Time product in addition to the accounting software.

Where QuickBooks Online Wins

That said, before you choose between Xero and QuickBooks, triple check that your bank is supported! You can connect your bank account during the trial period to make sure it’s working 100%. 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.

Integrate Xero or Quickbooks with Wise Business and start saving money on international payments

Depending on the plan you select, QuickBooks Online’s monthly prices run from $30 for the Simple Start plan to $200 for the Advanced plan. Beginning August 1, 2024, prices will run from $35 to $235 per month. QuickBooks Online and Xero both have a large collection of integrated apps, which should be enough to cover your business automation needs. If you invoke the guarantee, QuickBooks will conduct a full n evaluation of the Live Bookkeeper’s work. In an increasingly interconnected global economy, small businesses in the United Kingdom (UK) have more opportunities than ever to expand through import and… Through Wise, you can reduce the hefty fees most banks charge on international transactions – it’s simply one less thing to worry about and you even can earn a return on the money you hold.

Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits. Xero is also a better option for businesses that are expanding internationally as it offers multicurrency support. With QuickBooks, you can connect any bank account to the platform provided that the bank is supported under the Open Banking regulations.

Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. 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.