So Your Probably thinking which is better Quickbooks or Xero. If you are running a small business, you have two options for bookkeeping: a spreadsheet and an online accounting software.
Since you are serious about your business, you are definitively budgeting for the online accounting software – that’s a no-brainer. The two indisputable leaders in accounting software are Quickbooks and Xero. These two titans are engaged in a heated fight for supremacy. When it comes to making the choice between them, you must be careful with your choice or else you could be shedding money down the drain!
You have to very carefully weigh in the pros and cons but have no fear, we have done that for you. Take note of how these two compare in order for you to make a more educated decision and wipe away any financial risk.
Quickbooks and Xero Comparison Chart
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Xero or Quickbooks (The Major Differences)
As you will note, these two companies really put out their muscle to offer customers the best service possible. QuickBooks came first and had a market that was pretty much free from competition. When Xero came about, they gave a good fight and continue to do so. Now, it feels that QuickBooks is giving a good fight but Xero edges out the competition in key areas.
Xero is about innovation and bettering themselves. Not that QuickBooks is sleeping in its laurels, but Xero has created more intuitive and customer-aimed services. Xero offers accesible features, great invoices, free payroll included across all plans, a better customer service, and better customer reviews.
If you are in need of strong accounting services, Xero will not let you down. Their services are aimed to small and medium-sized business, meaning that they allow scalability with a software that will grow with them. QuickBooks is great for small businesses. If your company rests on invoices, your clear choice is QuickBooks since they offer invoice capabilities beyond anything Xero can offer at the moment.
Check out the review of all the features that QuickBooks and Xero have to offer. This will help you make a more informed decision of which one works best for you. Who knows, in the end it could turn out that none of them meets what you are needing right now. As for us, we trust that Xero will be always running towards staying at the top of their game with new features and capabilities. In less time, they have managed to be a strong online accounting service.
Xero Accounting vs QuickBooks
We mentioned earlier that these two online accounting software companies offer very similar services. Quickbooks is two years ahead of time, at least when it comes to chronological age. However, Xero has been able to step up to their game to provide excellent accounting services. The following are some of the features that they have in common:
Even though they practically offer the same features, it is the way they deliver these services that sets them apart from each other. Now, let’s take a general look at the pros and cons of using each. This should give you a better idea about the reason of our decision.
Quickbooks has many interesting features, but the real pro ones are part of a plus package that you must buy. Xero, on the other hand, offers most of their amazing features within all plans. But when it comes to reports, Quickbooks is really straightforward and unmatched by Xero.
When it comes to invoices, Xero is more versatile than Quickbooks as they offer more customization options. You also get more control over banking with Xero but, unlike Quickbooks, you cannot customize reports.
As we stated before, the tie in almost everything they offer is almost imminent. But the trick into knowing which one is best for you rests on the small details. Those are the ones that can make a difference between having an awesome experience and a rather poor one. We got you covered with all the details to help you make your decisions.
Inventory Xero or QuickBooks
Both Xero and QuickBooks offer the service of recording inventory, which is a great feature to have online.
Both of them offer a Zapier integration as well. This software can connect you to over 40 eCommerce solutions.
Now, this is what you get with Xero’s inventory capabilities:
Now, this is what you get with Xero’s inventory capabilities:
Which one is best for your business will ultimately be your call. We personally prefer Xero due to the usefulness of the information they provide and the ease of use. Sometimes more is not better, and even when QuickBooks delivers a larger number of possible eCommerce integrations, so many could be overwhelming.
Our verdict: Xero takes the lead here and is our winner.
QuickBooks and Xero app marketplace comparison
It is definitively no secret that QuickBooks has dominated the North American market for as long as they have existed. The desktop downloadable version has been around forever. But when it comes to cloud accounting, things have been having some interesting turns.
Xero made an “American invasion” in 2011 and it took them not long to take a huge chunk of the market pie. You might wonder why, if Xero has been taking such giant leaps, you don’t seem to have heard of them too much. This is because Xero is a company conceived in New Zealand and their stronger market has been New Zealand, Australia, and the U.K.
Over the last ten years, both companies have had an amazing growth. Xero, for example, has released amazing features that have set QuickBooks Online in an alert. The fight for supremacy is fierce as both companies fight for a larger chunk of international clients. To this day, though, QuickBooks Online has more than twice the subscribers than Xero.
Our Verdict: This is an easy one as QuickBooks Online double-kicks Xero’s butt.
Tracking mileage in Xero or Quickbooks
For the sake of tax deduction or reimbursement, mobile apps for tracking mileage should do the heavy lifting for you. Every mile you run for your business is worth about 53 cents in tax deduction or reimbursement.
The most efficient way to do this is to track them via a mobile app. Now, when it comes to this service, the main difference between Quickbooks online and Xero is that the former includes the service within their mobile app while the latter does not.
Xero, on the other hand, offers compatibility to upload reports generated by other apps. This might be convenient if you think that it allows you to use the mile tracking app of your choice, but then having to go through the work of downloading reports from one app and uploading to Xero might be a bit time-consuming.
Quickbooks Online provides their service within a section known as Quickbooks Self-Employed. The app is fast and intuitive. Customers report that tracking mileage is efficient, easy, and it has helped them crush it when it comes to tax returns.
As we said earlier, both of these companies are aware of how much customer support is appreciated by clients. Because of this, they have put special effort on keeping technical support as seamless as possible. This is why we will call it a very close draw.
Xero or QuickBooks online pricing
The main distinction between pricing plans in both companies is that Quickbooks provides cheaper plans but offers extra functionalities for an extra price. Xero, on the other hand, is a little more expensive but it does not focus on limiting the features but in limiting the number of employees you have on payroll. Very important here is then, that Xero aims to small-to-mid-size businesses rather than only the small ones.
**You can have a 30-day trial for any of the plans you decide to go for. It is the same with Quickbooks. As you will see, QuickBooks online is cheaper but removes many features from every plan, giving you the option to pay a bigger price for extra functionalities.**
Something really important. If you buy any plan, you will get a 3-month 50% discount on all plans, including the payroll ones. QuickBooks, being versatile as it is, also offers Quickbooks Pro and QuickBooks Premier. These two are essentially software that you get to install on your computer. They work across all operating systems. They both have a “Plus” version that usually includes an extra security. Let’s take a look at how these two compare and contrast.
Features of Quickbooks Pro
You can get the Pro software at $299.95 that includes all the main offline features of QuickBooks. The Pro 2018 is a one-time purchase that requires installation. There is a Pro Plus 2018, which you can get for $299.95 per year, but with a 33% discount for 12 months. This one includes everything in the Pro 2018 but it adds 24/7 unlimited support, upgrades, and automatic backup.
Features of QuickBooks Premier
Premier contains the same features of QuickBooks Pro but it has more functionalities. This “premier features” include the creation of sales order, inventory, track costs for products, and up to 5 users, among other things. The QuickBooks Premier 2018 can be purchased at $499.95. The Premier Plus 2018 version includes all the perks of Premier 2018 plus 24/7 support, upgrades and data backups. This one has the same cost of Premier 2018 except it is an annual fee.
If we were writing this a year ago, we would say that, in terms of security, these two are definitively tied.
But Xero has been gaining terrain in terms of security while QuickBooks has actually had some clients complaining.
Both companies have user redundancy, data encryption, and physical measures at their data centers. But right now, Xero has the strongest reputation for being safer than its competitors. Presently, they report a 99.97% uptime, which is pretty impressive. QuickBooks Online has actually had some clients complaining about downtime and outage issues.
Now, these two are on the forefront of innovation and in general terms, there ar no major issues here. This is probably just a momentary inflexion point in QBO, caused even maybe by the amount of data they have to manage for their large number of clients.. Make no mistake that these two will very soon be side to side in security.
Costumer Support Comparison
This is another tough category to place them. This is because experiences are so varied and different. But if we were to place them side by side, our winner here is Xero.
The company has professionals that really know what they are doing. Besides being well-informed, they are quick to respond to customers.
They offer ample resources to get in touch. These include a help center, an in-software help button, a community forum, and many accounting and business guides. Unlike QBO, though, they do not provide a telephone number, something that clients have repeatedly complained about in the past. Let’s just hope Xero has an open ear to clients’ claims.
Our Final Look (Conclusion)
If you have a small business and would like to skip the steep learning curve of Xero, then QuickBooks is probably the best choice for you. Even if you face an issue or have questions, they have an important amount of information that could help you.
They are a phone call away. You are warned though, that their response time might not be the best. Some customers reported a slow response and others even stated that the agent was not too knowledgeable.
With Xero, you have a higher chance at scalability. Yes, some features require you to learn but their customer service is fast at helpting you sort things out. The one thing you will miss here is probably a more human and/or personal approach. It is up to you how much you are willing to give up on this.
Our best bet for you is Xero. Give it a try. If after certain time, you feel you need a change, you can easily migrate all your spreadsheets and rest of information to QuickBooks.The truth is that none of them will let you down if you are looking for a strong online accounting software.