QuickBooks Online vs Xero 2024 Comparison

FreshBooks charges $17 per month and QuickBooks charges $30 per month). However, the best option and price point will depend on the specific capabilities and features you are looking for. Both QuickBooks Online and Xero are good accounting solutions, but the right software is going to depend on your company’s budget and feature needs.

Which Is Best For My Business: Xero Or QuickBooks Online?

QuickBooks Online is a good option for many small businesses that are looking to make invoicing customers easy and integrate invoicing and payments into the general ledger. Small businesses can customize how they use the platform so that they only use the features they need. QuickBooks Online is cloud-based accounting software that covers all the accounting needs you may have. It’s a subscription-based service that is good for various industries and beneficial to those who regularly work with a bookkeeper or accountant because you can give the study of curves angles points and lines them access to your files.

Customer Service

QuickBooks Online has over 750 integrations encompassing everything from customer management and payment processing to tax preparation and lending. If you don’t want to handle your books yourself, you can sign up for QuickBooks Live Bookkeeping. This add-on is available for an additional deposit slip charge and assigns a professional bookkeeper to manage your books.

Best Accounting and Bookkeeping Apps for Small Businesses

QuickBooks Online has four pricing plans ranging from $35/month to $235/month. The more expensive QuickBooks plans include additional features and users. While Xero’s entry-level plan seems like the better deal when compared to QuickBooks, limitations on invoices and bills make it suitable for very small businesses or freelancers. Xero also doesn’t have some built-in features that you’ll find with QuickBooks, including payroll (although Xero integrates with Gusto) or payment processing.

After a 30-day trial period, Xero will bill a monthly charge of $13 per month for the Early plan, $37 per month for the Growing plan and $70 per month for the Established plan. For free invoicing platforms, consider Zoho Invoice, Square Invoices or cost center definition PayPal Invoicing, although these platforms provide fewer capabilities. Xero may be harder to learn than a simpler invoicing platform like Square Invoices or Zoho Invoice.

1. It also has mobile apps that, according to users, outperform other popular accounting software apps.
2. So, if you want a low-cost inventory management solution, go with Xero.
3. These companies offer Gusto integration for the same price—$40 per month and $6 per month per person.
4. Business owners, freelancers and entrepreneurs often spend a large chunk of time on administration and accounting.
5. However, we want to emphasize that Xero offers fixed asset accounting in all its plans, making it an affordable QuickBooks alternative for fixed asset management.
6. Create professional custom invoices with your logo that you can send from any device.

How QuickBooks Online can help your business differently

First, QuickBooks has phone support while Xero does not, so QuickBooks users can solve their problems that much faster. Second, QuickBooks offers some features that Xero doesn’t have, like document scanning. That said, Xero has a lower price point, starting at $13 per month, compared to QuickBooks’ $30 per month starting cost, and Xero offers more integrations than QuickBooks as well. 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.

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. When comparing accounting software solutions, QuickBooks Online is a highly recognized name that likely comes to mind. However, other popular systems, like Xero, could be the better choice for running your business. Through QBO, you can prepare and print W-2s for your employees and 1099-MISCs for your contractors. QuickBooks Live Tax also gives you access to expert tax advice, maximum tax deductions, and tax filing through TurboTax (pay only when you file). However, if you take advantage of this trial, you will not be able to receive a new user discount, so choose wisely.

This makes it a versatile tool for small businesses that need to streamline their operations. QuickBooks has earned the trust of millions of small businesses due to its robust features and user-friendly design. The platform offers a comprehensive range of accounting tools, from invoicing and expense tracking to payroll and inventory management.