QuickBooks and Xero are popular accounting software platforms for small businesses. We’ll compare their essential accounting features, pricing, integrations and more to help you choose the right accounting software for your needs. QuickBooks Online offers integration with hundreds of apps, making it great for small business owners. These integrations including PayPal, TSheets, Bill Pay for QuickBooks Online, and Stripe, with apps available for inventory, payroll, CRM, and time tracking. QuickBooks Live doesn’t offer tax filing or payroll services, unlike Bookkeeper360.
If mobile payment is important to you, QuickBooks’ app might be better. If you often need to record bills and bill payments on the go, Xero’s mobile app might be preferable. Another reason QuickBooks Online stands out is its ability to calculate sales tax rates automatically based on the customer address, which is something Xero can’t do. Hence, it’s no surprise that QuickBooks Online is our overall best invoicing accounting software. One user expressed that they like that QuickBooks has more robust accounting features than most competitors.
- The solution’s comprehensive and user-friendly invoicing and reporting features impressed us.
- While most business applications (including Xero) have transitioned entirely to cloud-based software, QuickBooks is unique in that it still sells an old-fashioned desktop version.
- QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep.
Both platforms offer payroll capabilities, but they differ in how they’re implemented. QuickBooks (Figure C) has a core payroll function built into its system, while Xero requires users to integrate with Gusto to handle payroll. Xero’s support and learning portal, Xero Central, offers access to a searchable database categorized by topics like ‘Inventory’ or ‘Reporting and Tracking,’ among others. Resources include how-tos, explainers, and professional development courses. Both services will allow you to modify your main dashboard to display the stats that matter most to you, but QuickBooks offers a little more flexibility.
Xero to QuickBooks Data Conversion – Convert Xero to QuickBooks
Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances. While the two both offer similar features, such as tax management, financial reports, integrated payroll, inventory and file storage, the two are not without their differences. Forbes Advisor compared Xero vs. QuickBooks when it comes to the key features, pricing, customer service and reviews to help you decide which is right for your business.
- The following are additional tasks you can do in QuickBooks Online if the scenario applies to you.
- You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com.
- QuickBooks makes its state-of-the-art expense-tracking features available to all customers.
- That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary.
- For example, the Xero file includes both postal and shipping addresses, but only one address can be imported to QBO.
- Both have great A/P features, but QuickBooks Online is slightly better due to its ability to generate recurring payments.
We like how much power QuickBooks gives you over your monetary data. QuickBooks is an accounting industry leader, so its app integrations are exceptionally diverse and high-quality. QuickBooks and Xero are two of the best accounting software options with a range of plans and packages that can work for freelancers, small businesses and large enterprises alike.
To help you determine how both tools stack up, here is a head-to-head comparison chart featuring pricing and other capabilities. 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. It’s worth noting that QuickBooks uses a first-party payment processor, which means that the money goes through QuickBooks, while Xero uses third-party processors, like PayPal or Stripe. Neither of these is better than the other, but it pays to be aware of the differences.
Actual users express high levels of satisfaction with Xero’s customer service, while QuickBooks has received poor user feedback. Perhaps our favorite Xero bill pay feature is that you can use the platform to schedule batch payments for one or many vendors. This is the easiest tool we encountered in any accounting software platform for making timely payments in one click. We were delighted that Xero makes it so simple to keep up on your accounts payable and avoid late payment fees.
Security Features
They may have almost the same features, but each has its own strengths and drawbacks. We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers. The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. The software must have enough reports that can be generated with a few clicks.
QuickBooks Advanced also includes on-demand training at no additional cost. Our only QuickBooks bill-paying disappointment was that you can’t access the feature via the Simple Start package. If the most payroll accountant salary guide affordable QuickBooks solution is your priority, you forgo the ability to pay bills through your software. QuickBooks seamlessly integrates with Square, an excellent POS system for small businesses.
Can you invite your accountant into your QuickBooks account?
Transitioning your financial data from QuickBooks Online (QBO) to Xero is a significant undertaking, so ensuring the conversion’s success is crucial. This checklist will ensure that you’ve left no stone unturned when making the switch. In addition to Jet Convert, there are a handful of other tools that have worked well for us and our clients. Next you will enter your business name, select your industry, check whether or not you have employees.
Inventory Tracking
Xero and QuickBooks are two of our best-rated accounting tools, but Wave is undoubtedly the safest bet for businesses watching the bottom line. Unlike Xero and QuickBooks, businesses can get started on Wave for completely free and the software is also available to an unlimited number of users — extending its use even further. Xero’s financial reporting features start with its interactive reports and budgets, updated in real time throughout the week.
Hundreds convert their QuickBooks files to Xero every month
QuickBooks and Xero are among the best accounting software platforms for small businesses. The Business category is where you’ll find invoicing, bills to pay, purchase orders, and products and services. The invoices option in Xero displays a nice summary view of all invoices and their current status.
You may have to carry out some edit work due to change of format in QuickBooks Online. QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. Businesses whose home currency is not GBP are currently not supported.