Moreover, if you want to add payroll capabilities to your Xero plan, you can take advantage of Xero’s partnership with Gusto payroll for direct, full-service payroll integration. Plus, Gusto offers two months of their services free for Xero customers. Now that we have an idea of what Xero and QuickBooks Online each offer, let’s take an even deeper look at how their capabilities stack up against one another.
- If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit.
- ECommerce businesses can easily connect their accounting software with payment platforms like PayPal and Shopify.
- NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business.
- All three plans come with an optional add-on for payroll with Gusto for $40 per month plus $6 per month per person.
On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. Another notable difference is that QuickBooks Online lets you upload your file of transactions, so you aren’t required to connect your bank account. With Xero, you have to connect your account to reconcile your transactions.
How much does QuickBooks Online cost?
The last plan that Xero offers, the Established plan, includes all of the capabilities of the Growing plan with some added benefits. Xero best suits medium to large businesses but works for all businesses. In addition, Xero has a far more user-friendly interface than QuickBooks, so its ease of use makes it the perfect choice for the self-employed and those with less accounting experience. QuickBooks is generally praised for having a more intuitive user interface, especially for users without an accounting background. Xero, on the other hand, might be slightly more suited to accountants and bookkeepers due to its design.
Do I need accounting software for my small business?
With QuickBooks Online, on the other hand, you only receive phone support from 6 a.m. If you have the Advanced plan, you receive QuickBooks Premium Circle; however, this simply puts you first in line when you call customer support. As the QuickBooks Online plans increase in price, you receive additional features and capabilities with each level (that were not available in the previous level). Explore cloud and desktop-based accounting software with subscription and perpetual licensing options like AccountingSuite, Xero, TallyPrime, and Striven. When comparing accounting software solutions, QuickBooks Online is a highly recognized name that likely comes to mind.
However, keep in mind that the entry-level Early plan only supports 20 invoices and five bills per month, so if you regularly exceed that, then you’ll need to upgrade. All of the QuickBooks plans allow you to create unlimited invoices and quotes and customize them to reflect your company branding. QuickBooks also allows you to accept payments from debit or credit cards, as well as ACH payments, Apple Pay, PayPal and Venmo. Plus, you can get paid in person thanks to its integration with the GoPayment app and card reader, and you can either enter bills manually or sync your bank accounts to automatically import those transactions. FreshBooks can be a good option for freelancers and contractors looking for an affordable, simple accounting software.
day free trial
We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one. If you need to give accounting access work-in-progress wip definition with examples to more than five people, Xero could be the better option for you. QuickBooks Online’s most popular Plus plan tops out at five users; its highest-tier Advanced plan allows up to 25 users, but that plan is expensive at $235 per month.
Explore additional comparisons
QuickBooks is the leading accounting software for small businesses, designed to simplify financial management and empower growth. With a user-friendly interface and a comprehensive suite of tools, QuickBooks streamlines tasks like invoicing, expense tracking, and reporting, giving you a clear picture of your financial health. From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs.
In terms of entering transactions, whether you’re using Xero or QuickBooks Online, you’ll have a plus sign (+) at the top of the menu navigation which will allow you to enter any kind of transaction. You will receive an email message with instructions on how to reset your password. For more information, see our full Xero accounting review as well our list of the top Xero accounting alternatives.