A Comprehensive Review of Xero vs QuickBooks ReliaBills

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. Xero and QuickBooks Online are two of the most popular accounting software platforms. Here’s our comparison of their pros and cons to help you decide between them. 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.

Businesses with inventory items should choose accounting software that can track inventory costs, manage COGS, and monitor inventory units. For instance, If you have complex bookkeeping needs and require a QuickBooks-specific virtual bookkeeping service, then choose QuickBooks Live. However, if you want a more scalable solution with the option to hire additional services like payroll and what is medfica 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. Unfortunately, many don’t have positive experiences with QuickBooks’ customer support.

  • 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.
  • The Online plans start at $30 per month, whereas the Desktop plans must be paid annually and start at $492 per year.
  • A cloud accounting tool is one of the most powerful contributors to the day-to-day running of a company.
  • With more than 3 million users worldwide, Xero is popular but not as ubiquitous as QuickBooks Online.
  • They’re both strong solutions that meet all of the standard accounting needs and offer lots of extras.

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. Chargebee provides integrations with both Xero and QuickBooks, allowing you to automate your SaaS accounting with your preferred accounting solution. SaaS and other subscription-based businesses have their own financial challenges, like managing recurring billing and revenue recognition. QBO also has a Reconcile tab that shows you a single list of transactions. You can go through and check off each transaction that matches up with an expense from that month’s bank statement.

Xero bank feeds vs. QuickBooks bank feeds

This makes it easy to find the integrations you need and compare several options side-by-side. Both platforms ultimately ranked among the most affordable we encountered, and we appreciate how transparent both are in their pricing. However, QuickBooks is our winner because you get much more with its two highest-priced tiers than with Xero’s highest-priced tier. You might pay more for QuickBooks, but the platform’s value per dollar justifies its higher costs. Note that the company occasionally offers limited-time discounts. We like that QuickBooks offers extensive features in each pricing package.

  • For a quick overview of how Xero and QuickBook’s features compare, check out the table below.
  • Both Xero and QuickBooks Online integrate with many third-party add-on apps that supplement the basic accounting features, adding more capabilities and efficiency.
  • Both can integrate seamlessly with Wise Multi-currency account which is specifically handy for sending and receiving international payments.
  • Reporting in Xero is solid, with a variety of financial statements and management reports available.
  • Available for free on iOS and Android when you’re a QuickBooks Online customer, the app offers instant access to your QuickBooks dashboard, including accounting reports, invoicing and much more.

We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different products compare with each other and how they work in real-world scenarios. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances.

We also found it easy to apply formulas in Xero to compare our budget and actuals side by side. Help is accessible from any data-entry screen, and a demo company is available for those who want to enter practice transactions without worrying about messing up their own data. Xero’s accounting functionalities are fairly simple to navigate, so it’s likely these resources will be sufficient if and when something goes wrong.

How They Compare: Xero vs. QuickBooks

One advantage of QBO over Xero is that it lets you update details about the client directly in the invoice rather than needing to go through their contact record. Xero’s support is primarily online — no phone number is provided. The good news is that customer service is available 24/7 for users of all plans. No matter how amazing your accounting software is, there will come a time when you need help from customer support.

By accessing and using this page you

QuickBooks Online’s customer support is better than Xero’s since you can interact with an agent through a phone call. You can’t initiate a call, but you can submit a ticket and wait for an agent to call you. While it’s not part of our case study, we evaluated Xero vs QuickBooks Online in terms of assisted bookkeeping. We consider this a draw since each program is designed for specific business needs. Another difference is that Xero requires you to upload bank statements to complete reconciliation.

A/P Management: QuickBooks Online Wins

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. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach. For over a decade, she’s helped small business owners make money online.

What is QuickBooks Online?

Much like Kenji’s ice cream comparison, having a trusted piece of accounting technology is much better than not having one. And you can rest assured knowing that you can’t go wrong with Xero or QuickBooks. Both of these small business accounting software options are similarly priced and work in similar ways. As a result, you’ll have to process payroll for more employees, cater to more customers, and manage larger inventories. Thus, you must ensure your accounting solution grows with you and your business. If you want a tool to track inventory, Xero is better at inventory management than QBO.

If you didn’t receive an email don’t forgot to check your spam folder, otherwise contact support. Again, if you opt out of the free trial, you’ll get 50% off the base fee for your first three months of service. Depending on the plan you select, QuickBooks Online’s monthly prices run from $30 for the Simple Start plan to $200 for the Advanced plan. QuickBooks Online and Xero both have a large collection of integrated apps, which should be enough to cover your business automation needs.