QuickBooks is Intuit’s general accounting software, while QuickBooks Online (QBO) is specifically the cloud-based service. For QBO, you pay a monthly subscription rather than an upfront fee, and you get all the patches and software updates from Intuit. In this article, we’ll mostly refer to QuickBooks Online, which is what we think you’ll likely opt for instead of Intuit’s desktop version of QuickBooks. 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. Premium includes scheduling for jobs and shifts, real-time reporting, custom alerts, and time-off management.
- Linking to your actual accounting and CRM data allows you to define rules and methods to create a rolling forecast to better model your business’s progress.
- If mobile payment is important to you, QuickBooks’ app might be better.
- Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically.
- For companies in need of a payroll function for their employees, Xero offers add-on integrations for an additional cost.
I want to have both certifications so that I can grow as an accountant as a business. QuickBooks has the more straightforward certification program, though the test does add in a hurdle. A document must also be published from the connected Hubdoc organisation to Xero at least once in any 60 day period. To earn points for clients who use Xero Expenses, you or the client needs to be paying for the Xero subscription. To earn and retain points for using new Xero Expenses in your practice, at least one user must be actively submitting expense claims.
Features: QuickBooks Online Wins
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. While the vocabulary may vary between the two products, they both offer electronic banking, excellent invoicing, payment acceptance, and bill management capabilities. Both Xero and QuickBooks Online are optimized for small to mid-sized businesses, so large enterprises with more complex requirements may struggle to tick all of their boxes. Neither QuickBooks or Xero offers a permanent free plan, but if that’s what you need, we have a guide to the best free accounting software. Xero’s security measures keep your data encrypted and stored in multiple locations online, keeping it safe yet backed up.
- The Online version has a monthly subscription charge, rather than a hefty upfront fee.
- QuickBooks Advanced plan users can access 24/7 phone and chat customer service.
- QuickBooks Online didn’t used to have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced.
- While both platforms allow users to customize reports, Xero’s approach to report customization is more flexible and straightforward, enabling users to easily tailor reports to their specific needs.
- The ability to link directly with your CRM tools anchors your forecast in financial AND non-financial metrics.
However, if you want a more scalable solution with the option to hire additional services like payroll and tax filing, then Xero is the more suitable choice. It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image. On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. A satisfied Xero user shared that the program is the most user-friendly accounting software on the market.
Should your organization use Quickbooks or Xero?
We also like that you can use Xero to set recurring bills, generate billing reports, and store and organize all your bills. This makes the tool as great for payment as for understanding your cash outflows. Plus, you get bill pay tools no matter which package you choose, although you can only pay five bills per month with the Early plan.
About QuickBooks Online and Xero
While it has numerous advantages, there are a few drawbacks to consider before deciding if Xero is the right choice for your business. Again, if you opt out of the free trial, you’ll get 50% off the base fee for your first three months of service.
Assisted Bookkeeping: Tie
This feature is available in QuickBooks Online, and it even allows you to create a digital transaction using the uploaded receipt. To help you determine how both tools stack up, here is a head-to-head comparison chart featuring pricing and other capabilities. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; however, there is a learning curve. Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University.
They explained that if you import 500 transactions into QuickBooks incorrectly, you have to delete them all one by one. This is a time-saving feature for businesses that handle a large volume of transactions on a daily basis. All plans include 24/7 live chat support; phone support is available 5 a.m.
Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, law firm bookkeeping 101 partner apps that initiate transactions can automatically contribute to your limit. We provide the best small business accounting, payroll and sales tax services at an affordable cost.
Accounts on the go
Xero is an online accounting software tool that can work nicely for large businesses but that mainly targets small and midsize businesses. It helps businesses track expenses, manage invoicing, automate payments and manage inventory. It also provides access to a wide range of add-on applications from partners and third-party developers, including payroll, customer relationship management and point-of-sale solutions. Whether Xero or QuickBooks Online is right for you depends on the specific features you need and how much you can afford to pay. Xero is more affordable than QuickBooks Online, allows you to add an unlimited number of users without additional costs, and offers inventory management and fixed asset accounting in all its plans. QuickBooks, on the other hand, has generally more developed features, such as bank reconciliation without bank feeds, makes it easy to find bookkeeping support, and has live customer support.