Xero and QuickBooks Online are robust accounting software programs, and—in our case study—both prove why they’re the leading tools in the industry. They may have almost the same features, but each has its own strengths and drawbacks. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
Banking: QuickBooks Online Wins
The Ascent, a Motley Fool service, does not cover all offers on the market. The Contacts category lets you manage all contacts, from customers to suppliers to wages payable definition and meaning contractors, from one location. Reporting in Xero is solid, with a variety of financial statements and management reports available. Perhaps you’ve read our accounting software reviews but remain confused about which of these two, popular accounting tools is right for you. 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.
Customer Support: QuickBooks Online Wins
Xero’s security measures keep your data encrypted and stored in multiple locations online, keeping it safe yet backed up. All plans support two-step authentication for all users, and the company guarantees it’ll keep your data private. 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.
QuickBooks Online is easy to use, so it’s a good choice for beginners. This software is best suited for small to mid-sized businesses, although its Advanced Plan that supports up to 25 users does make it a viable option for larger businesses. QuickBooks Online also has advanced accounting features you won’t find with some of its competitors. However, unlike Xero, the software is quite intuitive and easy to use — even beginners with no prior accounting experience can master the software quite easily. Note, each QuickBooks Live offering requires an active QuickBooks Online subscription and wisenet wave additional terms, conditions, limitations and fees apply.
Phone support and live chat support are available 24/5 to all paying customers, but third-party integrations are limited compared to QuickBooks Online and Xero. This makes it the best accounting software we’ve researched and helped it to edge out Xero what is a schedule c irs form in this round. The QuickBooks Advanced plan costs $200 per month, supporting 25 users. Xero vastly outperforms QuickBooks in its fixed asset management tools.
- We looked into the positive and negative feedback of both software, and we found that they received a fair share of praise and complaints.
- QuickBooks Online offers much better invoicing with multiple templates to choose from as well as built-in packing slips.
- Through Xero, you can integrate with HR software provider Gusto for $40 per month plus $6 per employee.
- You may never need to call support, but it’s nice to know it’s an option.
- Integrates with more than 750 apps and offers live, in-house bookkeeping add-on.
Why You Can Trust Fit Small Business
Beginning August 1, 2024, prices will run from $35 to $235 per month. QuickBooks Online and Xero both have a large collection of integrated apps, which should be enough to cover your business automation needs. If you didn’t receive an email don’t forgot to check your spam folder, otherwise contact support.
A New Zealand-based company launched Xero in 2006 to challenge the growing accounting software market. Intuit also offers QuickBooks Desktop versions for companies that require it, but we will compare the Online version in this guide. Neither Xero nor QuickBooks Online is lacking when it comes to features. Both have basic accounting features, including invoices, estimates, bank reconciliation, expense tracking, and journal entries. With both programs, advanced features like time tracking and inventory management are available on select plans.
Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc. Xero and QuickBooks are two of our best-rated accounting tools, but Wave is undoubtedly the safest bet for businesses watching the bottom line. Unlike Xero and QuickBooks, businesses can get started on Wave for completely free and the software is also available to an unlimited number of users — extending its use even further.
Security Features
Most bookkeepers are familiar with QuickBooks software, so finding someone to assist with your accounting needs is easy. Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.