More specific categories – Business, Accounting, Payroll, Projects, and more – have their own dashboards, accessible with a horizontal sidebar. You can click any data to see a full, detailed breakdown, complete with historical context, and you can set up data tracking to automatically generate specific reports. Compared to QuickBooks, Xero’s time tracking features are easy to use. You can simply download the free Xero Projects app on iOS and Android, using it to record time and costs, as well as seamlessly and automatically feed the data into invoices and reports. Premium includes scheduling for jobs and shifts, real-time reporting, custom alerts, and time-off management.

• QuickBooks have been praised for the way they assist customers with understanding how to use the software, whereas users of Xero will have to search for tutorials on external services such as YouTube.
• That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary.
• We’ve partnered with Dataswitcher who specializes in accounting software conversions to ease the process of moving from Xero to QuickBooks Online.
• For this category, we rank Xero first due to its free 24/7 online customer support across all its plans.
• One complained that they are often transferred to different departments when they contact QuickBooks.

Its Online version allows up to 25 users at no additional cost, provided you’re paying for the Advanced plan. Another key difference between the two companies is the maximum number of users it allows. Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise contingent liability definition and meaning plan. Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization with its mobile app as well as the online version. There is also a QuickBooks Community forum where users can ask questions and find answers to common questions.

Best Accounting Software for Small Businesses

If you are a business owner and often speak with accountants, you also must learn these terms for fruitful communication. Plus, you can import up to 12 months of transactions when you first use Xero, so you’re not starting from scratch. Both Xero and Quickbooks integrated with Wise which means that you can use your Wise multi-currency account to automate international transactions and sync them to your accounting records. QuickBooks is highly user-friendly, so even if you’re not yet familiar with accounting basics, your learning curve shouldn’t be too steep.

• Read on to learn more about the strengths and weaknesses of Xero and QuickBooks and make an informed decision for your business accounting needs.
• 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.
• 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.
• Both services do offer an app marketplace, for both in-house mobile apps and integrations or extensions offered by third-party services.
• Has robust reporting tools and report customization options, invoicing for an unlimited amount of clients, inventory tracking in higher tier plans, plus a capable mobile app.

It includes everything in Simple Start, plus bill management tools and a time tracking ability for adding up billable hours. 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. We researched both tools extensively to help you determine the best one for your company. In this article, we list their core features, pricing, pros and cons, as well as the type of company each bookkeeping tool is suitable for.

Integrations

Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans. The more categories you create, the more reports you can run to get a better idea of how your business functions and where there’s room to grow. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users.

You want advanced reporting

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. 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.

Xero bank feeds vs. QuickBooks bank feeds

We evaluated the features, pricing and customer support offered by both QuickBooks and Xero. We also set up trial accounts to get hands-on experience with both products and determine their user-friendliness for ourselves. The desktop version is installed on a computer, while the online version is accessed through a web browser. 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.

Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information. They’ll help you reconcile your bank and credit card statements and prepare monthly reports. Another notable difference is that QuickBooks Online lets you upload your file of transactions, so you aren’t required to connect your bank account.

About Xero

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. It is important to take time when choosing a right accounting software because once you set up the software it can be difficult to change your accounting platform. Tax Care Accountants is both a Xero and QuickBooks certified advisor pro; We offer free advice on choosing the right accountancy software for your business.