Xero vs QuickBooks Online: Features Comparison, Pros, Cons

Xero also offers stronger tools for tracking project profitability, giving you access to real-time reports. Additionally, Xero is a better choice for international businesses needing multicurrency support. QuickBooks can also track your mileage reliably and automatically using a GPS-enabled smartphone app. QuickBooks and Xero are two of the best accounting software options with a range of pricing plans to fit multiple budgets. We researched both tools extensively to help you choose the right accounting software for your business.

Project and time tracking

Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc. Yes, both have a fixed asset manager that allows you to track fixed assets and calculate depreciation. Fixed asset accounting is part of all Xero’s plans, whereas it’s offered only in the most expensive plan of QuickBooks Online, Advanced.

1. Xero’s Early plan gives you 5 bills and 20 invoices, but it only offers unlimited invoices and bills starting in its second product tier.
2. When it comes to integrations, QuickBooks Online and Xero are neck-and-neck, with each boasting more integrations than most accounting software options.
3. It does cost more to access this, which is approximately $22.50 more per month plus $6 per employee, per month.
4. The software must have bank integrations to automatically feed bank or card transactions.
5. On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors.
6. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.

Customer Support: QuickBooks Online Wins

Here’s a full breakdown of the main features of Xero and QuickBooks Online. You will receive an email message with instructions on how to reset your password. For more information, see our full Xero accounting review distinguish between tangible and intangible assets as well our list of the top Xero accounting alternatives.

They’ll help you reconcile your bank and credit card statements and prepare monthly reports. 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. Read our QuickBooks Bill Pay review for more details on the solution. You might prefer QuickBooks for invoicing and A/R management, and it earned a perfect mark in this category. It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image.

Note that fixed asset accounting isn’t part of our case study, so there are no scores. QuickBooks has a wide network of banking partners, making it easy to securely import your bank feeds from a variety of banks and credit card companies. This seamless integration saves time, ensures accuracy, and eliminates manual errors. QuickBooks’ user-friendly interface makes navigating your finances a breeze, even if you’re not an accounting expert.

Xero vs QuickBooks Online: Deep Dive Feature Comparision

She also regularly writes about business for various consumer publications. Intuit reports that 94% of accounting professionals feel QuickBooks Online saves them time and thus saves their clients’ money. Harsh is a data enthusiast with over 2.5 years of experience in research analysis and software development. He is passionate about translating complex technical concepts into clear and engaging content. His expertise in data integration and infrastructure shines through his 100+ published articles, helping data practitioners solve challenges related to data engineering. However, since this function has the potential to alter the Mapping’s Consistency and Reliability, you’ll want to utilize it with caution.

QuickBooks Online is full-featured accounting software that is easy to use, even if you’re new to accounting. In addition to the standard accounting features you’d expect, QuickBooks Online also has advanced features, exceptional invoicing automatizations and customizations, and built-in lending. It also has mobile apps that, according to users, outperform other popular accounting software apps. If your business needs many users to access your accounting data and requires low-cost inventory and fixed-asset accounting, Xero is the better choice.

Compare the features, pricing plans, and add-ons available with both QuickBooks and Xero to find the best accounting solution for your business. QuickBooks Online is cloud-based accounting software that covers all the accounting needs you may have. It’s a subscription-based service that is good for various industries and beneficial to those who regularly work with a bookkeeper or accountant because you can give them access to your files. Read our comprehensive QuickBooks Online review to decide if this popular accounting software is the best choice for your needs and budget.

QuickBooks Online leads in many categories, but Xero has some slight advantages in terms of fixed asset management, project accounting, and taxes. We tackle these differences between Xero and QuickBooks in detail in the following sections. QuickBooks goes beyond accounting with 750+ integrated apps, streamlining everything from payroll to customer relationships. This eliminates the need for multiple platforms, reducing time and effort while empowering smarter business decisions. However, the layout and navigation may not be as intuitive for some users, especially those who are new to accounting software. All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track your income and expenses.