Although both platforms offer significant resources on their websites for self-service help, Xero also provides free 24/7 online support for all of their users, regardless of their plan level or even timezone. Plus, Xero doesn’t outsource their customer service—all representatives are Xero employees. For example, an accountant might have their “Bookkeeping Services” mapped to their “Accounting Services” income account. Then, they would have their “CFO Services” also mapped to their accounting services income account. This capability allows users to keep the details out of their chart of accounts, which makes it easier to read profit and loss statements while running reports. In both Xero and QuickBooks Online, you can set up your products and services and map them to the appropriate accounts in your chart of accounts.
In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month. QuickBooks Online allows users to claim expenses and match them to photos of receipts in all plans, whereas Xero requires Xero Expenses, an additional feature only included in the highest-tier Established plan. If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit.
Capture data automatically
Moreover, as web-based platforms that each offer a robust mobile app, both Xero and QuickBooks Online provide small business owners with substantial accessibility. To compare QuickBooks vs. Xero accounting, we consulted product documentation and user reviews. We considered features such as invoicing, billing, payments, expense tracking, mileage tracking, project and time tracking and inventory management. We also weighed factors such as pricing, user experience, customer service and integrations.
Sales tax
- The main differences between Xero vs QuickBooks lie in features and pricing.
- Another of the most notable ways in which this QuickBooks solution stands out when comparing Xero accounting vs. QuickBooks Online is with their tax tools.
- QuickBooks Online Advanced will cost $180 per month (again, the discount applies here).
- 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.
- If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative.
Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. You can do a lot with QuickBooks Online, but all the options may feel like information overload starting out. Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. This doesn’t mean QuickBooks Online is the right choice for all businesses, though.
Plans & pricing
It includes everything in Growing, plus multi-currency accounting, project costing and tracking, expense claims, and in-depth analytics. Xero Growing is designed for growing businesses, offering everything in Early, plus bill management tools, additional invoicing, and bulk reconciling transactions. Compare the features, pricing plans, and add-ons available with both QuickBooks and Xero to find the best accounting solution for your business. Xero is a great option for large teams and small- to medium-sized businesses that need high-level accounting systems. It’s also a good fit if you want to integrate Gusto Payroll to your accounting platform. It allows three users for its Essentials plan ($55 per month) and 25 users for its top plan, the Advanced ($200 per month).
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. However, the layout and navigation may not be as intuitive for some users, especially those who are new to accounting software.
Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. With QuickBooks, you’ll get expert help from real people through phone and live chat six days a week. Our specialists are here to support you with every part of your QuickBooks journey, from the initial switch to onboarding. QuickBooks’ user-friendly interface makes navigating your finances a breeze, even if you’re not an accounting expert. The layout and simple is time an interval or ratio variable explanation and example design ensure that you can find what you need quickly and efficiently.
Fixed asset accounting is part of all Xero’s plans, whereas it’s offered only in the most expensive plan of QuickBooks Online, Advanced. 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. Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units. Xero has a slight edge in this category due to its ability to create a sales tax return and pay sales tax liability with either a check or electronically. While neither provider allows you to file a sales tax return, Xero’s features allow for more accessibility when it comes to sales taxes.