Essentials supports just three users, while Growing is unlimited, making it better value for large or growing operations. It has all the features of Growing, plus support for multi-currency claims and expense claims, as well as a function for tracking time and costs on a per-project basis. Granted, this doesn’t mean Xero is the most cost-effective option for your business needs. Here’s how each accounting software vendor breaks down their services, so you can see how they compare.
- To sum it up, both Xero and QuickBooks Online are attractive accounting software options.
- The QuickBooks Simple Start plan costs $30 per month and supports one user, making it best for very tiny businesses or for a single freelancer.
- Xero is similar to QuickBooks Online, but has a thinner reporting section which does not always load reliably.
- Business owners should spend the majority of their time increasing revenue, not getting frustrated and being uncertain of their financials.
Xero’s VAT calculator is a handy tool that makes calculating Value Added Tax (VAT) easier for businesses. It helps users quickly figure out the correct VAT amounts for their transactions, ensuring accurate tax calculations. With the Xero VAT calculator, you don’t need to worry about applying the right VAT rates—it does it for you. This feature saves time and reduces the chances of mistakes in VAT calculations, making financial management smoother and more precise for Xero users. ZipBooks offers a completely free starter level that includes unlimited invoicing and bookkeeping. We also include our Business Health Score and Invoice Quality Scores to help you figure out where you could be upping your game to make business better.
Xero vs. QuickBooks Online: Features
QuickBooks Online received a SoftwarePundit Analyst rating of 94 and Xero received a rating of 91. Speaking of tracking, both Xero and QBO have a way to track things like multiple store locations, product lines, or sales channels. In Xero it’s called Tracking, and in QBO it’s called Class Tracking or Location Tracking. Both Xero and QBO let you customize invoices, add your preferred colors and logo, and change up what a customer sees on their invoice.
- Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users.
- The Established plan also supports a multi-currency function, which converts 160 different foreign currencies into your business’s local currency.
- We believe the quality of customer service you’ll receive varies a lot based on the agent.
- Xero lets you invite your accountant via email and assign them “advisor” permissions.
The first two plan tiers put a limit on billable clients, but not on invoices. The best choice depends on your needs — go through your existing business software and financial tools and see which platform they’ll integrate with. Also, consider whether you want to add other services, like payroll or inventory management, that are available through integrations. The QuickBooks Online dashboard, as you can see below, includes all the information you need to get a quick overview of your financial transactions.
Product features breakdown
The top products based on usability and customer satisfaction, as rated by user reviews. The essential guide to set up a company in Ireland, including how to register, choose a legal business structure, costs and much more. The Online version has a monthly subscription charge, rather than a hefty upfront fee. It’s also cloud-based and designed for use on the move, so you can access it from your laptop, smartphone or other mobile device. I have learned never to underestimate the importance of live product support, particularly when it comes to managing my money. Another benefit is that QuickBooks Online is better for small businesses, as you’re able to scale with your growing company.
Bookkeeper360 for Xero
Discrepancies are flagged for user attention, minimizing the risk of oversight and errors. Xero’s commitment to user-friendliness is evident from the moment users log in. The platform boasts an intuitively designed interface, current ratio calculator working capital ratio allowing even those without extensive accounting backgrounds to navigate seamlessly. This emphasis on accessibility aligns with Xero’s mission to empower businesses, regardless of their scale or financial expertise.
QuickBooks Pricing
For those who like everything in neat compartments, Xero may be your best option. Instead of the “add what you need” process many other accounting software applications employ, Xero requires you to set up your business completely before you can start using the software. With Xero inventory management (Figure B), users can track up to 4,000 finished items, inventory levels, set reorder points and monitor stock on hand. Although Xero’s inventory management isn’t as robust as that of QuickBooks, it’s still a powerful tool for managing business inventory. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
A tax default can be set for any purchase, and Xero offers an integration with Avalara TrustFile in order to help you file your returns. Xero’s software also lets you map your accounts to different categories of tax form, keeping everything organized. Core offers the basics, while Premium adds same-day direct deposit, role-based access, and auto time tracking. Elite also adds tax penalty protection, and a dedicated pro to help set up and troubleshoot. In terms of the accounting features that most businesses need, Xero and QuickBooks Online are both comprehensive tools that tick most boxes. But their approaches are different, and they each have different pros and cons.
She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online. When she’s not trying out the latest tech or travel blogging with her family, you can find her curling up with a good novel. If you’re a SaaS or subscription business owner — or if you’re a traditional business looking to adopt a subscription business model — Chargebee can help. Another difference is that Xero requires you to upload bank statements to complete reconciliation.