Choosing the right Accounting and Finance software for our business is difficult with various features, options, and terms to consider. That’s why today I would like to share with you my experience in two of the most popular accounting softwares: the XERO vs QUICKBOOKS comparison now to find out which one is the better choice for your organization.
What are they?
If you’re looking for the best accounting software for small business, Xero can be the most reasonable answer. Developed in New Zealand and initially geared toward the Australasian market, Xero now serves over 717,000 businesses in more than 100 countries. The company claims it provides “Beautiful Accounting,” focusing on ease of use, solid functionality, and an ambitious development schedule – product updates come out every 3-6 weeks. Xero is a professional online accounting software especially suitable for small businesses, it gives you a financial management system including freelancers, consultants, online merchants, store and restaurant owners, and service providers as well as helps you manage cash flow and income expenditure, thus easily make decisions accurate business decision.
Xero is a cloud-based software so you do not need to install, can be accessed online on any device, and you can assign privileges to other members and managing individual accession. With that, collaboration becomes easier. Furthermore, data on Xero accounting software can updates in real-time by multi-integration apps.
For non-finance people, it’s quite easy to understand and to use but still robust enough to keep our Accountant happy. Reporting is generally good but not the best for reporting on sales commissions. Definitely, a recommend for small businesses who need to work fast and efficiently. For more information about Xero, click here.
What’s about Quickbooks?
As serving over 1,397,000 businesses, QuickBooks is the BAND-AID of accounting software. QuickBooks Online is also an ideal accounting software for freelancers and small businesses like small business owners, bookkeepers, accountants, finance officers, and soloprenuers. They can use this integrated financial software system to simplify small business accounting. This app allows full capabilities to up to five users and limited functionalities to an unlimited number of users. QuickBooks Online automatically syncs your complete business finance profile to one single dashboard where multiple users can view in-depth reports and accounts of your company.Try Now
The app creates trade, profit and loss sheets as well as billing and invoice solutions that are all mobile compatible and print friendly. Users can create their own custom reports and feeds from within the dashboard.
Xero and Quickbooks Comparison
The Ease of Use
Xero is remarkably easy to use. It’s so well designed that I actually find myself smiling when using it and that’s praise I don’t readily give to accounting software, especially after I’ve been testing it for a few hours. The layout makes sense, navigation is generally efficient, and the knowledge base is comprehensive and well-organized.
QuickBooks Online is laid out quite intuitively, but since the redesign in 2013, the program has suffered from a lack of efficiency, along with some minor bugs. Navigation sometimes includes unnecessary steps and there is no comprehensive knowledge base.
- Winner: Xero
There’s a lot of overlap in the feature sets of QuickBooks Online and Xero. Backing up data, security measures, importing bank feeds, mobile apps, invoicing, and other basic accounting software features come standard. If your business just needs a fill-in-the-blank accounting package, these will both work equally fine, as far as features go.
Xero and QuickBooks Online are at the front of the pack when it comes to cloud-based accounting for small businesses and start-ups. While neither of them is a perfect solution, in the area of feature selection, Xero has pulled ahead.
Many features which come standard with any version of Xero are only available in the Plus version of QuickBooks (i.e. the expensive one). And some Xero features (such as allowing clients to accept quotes online, expense reporting, and multiple currencies) aren’t supported in QBO at all.
Here’s a breakdown of the key feature differences between the Xero and Quickbooks.
|Accept Quotes Online||All Versions||N/A|
|Basic Stock List||All Versions||Plus Only|
|Inventory Accounting||All Versions||Plus Only|
|Budgeting||All Versions||Plus Only|
|Purchase Orders||All Versions||Plus Only|
|Job Costing/Tracking Categories||All Versions||Plus Only|
|Recurring Invoices||All Versions||Essentials and Plus|
|Time Tracking||Standard and Premium||Plus Only|
|1099s||All Versions||Plus Only|
|Payment Reminders for Invoices||All Versions||N/A|
|Bills||All Versions||Essentials and Plus|
|Expense Reports||All Versions||N/A|
The major distinction between them is the number of users that have access to the service. QBO comes with three users, not counting two accountant access points, which can be used in conjunction with your accountant’s version of QuickBooks. Xero offers unlimited users and accountant logins – this is true at every pricing tier.
Xero also gives you the ability to create purchase orders, which isn’t included in this level of QBO. You’ll also have the ability to generate 1099s and W-2s with Xero. You can also run your own payroll for up to five employees in 29 states with Xero. Finally, Xero comes with some inventory tools built-in, with add-ons available for more technical inventory management.
On the other hand, QBO comes with multicurrency support, while Xero only offers that feature at its highest pricing tier.Buy QuickBooks Now
But indeed, the winner is Xero.
Xero offers over 400 add-ons, while QuickBooks Online offers roughly 360 add-ons. The quality of integrations varies by program; some will work best with QuickBooks Online, others with Xero.
–> Winner: Xero
Both companies provide top-level security. They house their servers in multiple secure Tier 4 datacenters, employ SSL encryption for data transfer, offer two-factor identification for logins, conduct routine penetrative testing, undergo external security audits, and back up user data to multiple locations. You’re not likely to find anything more secure.
Uptime is also excellent for both programs. Unfortunately, neither company has released recent figures. The latest figures I’ve seen indicate 99.95% uptime for QBO in 2014 and 99.998% for Xero in 2013.
|Plan Type||Xero||QuickBooks Online|
|Basic||Starter ($9)||Simple Start ($13)|
|Mid-level||Standard ($30)||Essentials ($27)|
|With payroll, 5 employees||Standard ($30)||Essentials & Payroll ($89)|
|Plus & Payroll ($102)|
|With payroll, 10 employees||Premium ($70)||Essentials & Payroll ($99)|
|Plus & Payroll ($112)|
QuickBooks wins on the low end of the spectrum, the programs are neck-and-neck in the middle, and Xero wins on the high end. If you want to allow clients to pay invoices online, QuickBooks charges higher credit card processing fees across the board.
Winner: Xero, check here.
It is obvious that in all key factors, Xero and Quickbooks do the same great job, but Xero tends to be a more effective and popular accounting software for its easy-friendliness, the value for money, and responsive care from the company and especially user’s experience like me. So I do hope my review can be helpful to assist your businesses. For more reviews about Xero now.
And click here to see how to install Xero now.