Introduction
As a business owner or accounting professional, choosing the right accounting software can be a daunting task. After all, there are numerous options available in the market. However, in this blog post, we will focus on two of the most popular accounting software - Quickbooks Online and Xero. We will compare both tools based on features, pricing, and ease of use, among others, to help you decide which one suits your business needs the most.
Quickbooks Online
Quickbooks Online is a cloud-based accounting software designed for small and medium-sized businesses. It is user-friendly and offers a wide range of features to support businesses of different sizes and industries. Quickbooks Online tracks income and expenses, manages invoices, and organizes financial data.
Xero
Xero is another cloud-based accounting software designed for small and medium-sized businesses. It offers a range of features similar to Quickbooks Online, such as invoice management, inventory tracking, and financial reporting. However, Xero's main selling point is its robust collaboration features that enable teams to access their financial data securely.
Pricing
Pricing is an important factor to consider when choosing accounting software. Both Quickbooks Online and Xero offer different pricing plans depending on the features required.
Quickbooks Online
Quickbooks Online has 4 pricing plans:
- Simple Start - $25 per month
- Essentials - $50 per month
- Plus - $80 per month
- Advanced - $180 per month
The most popular plan is the Essentials plan, which offers a wide range of features for small and medium-sized businesses.
Xero
Xero has 3 pricing plans:
- Early - $11 per month
- Growing - $32 per month
- Established - $62 per month
The most popular plan is the Growing plan, which offers features suitable for small to medium-sized businesses.
Overall, Xero is more affordable than Quickbooks Online, especially for small businesses. However, Quickbooks Online's Advanced plan offers more features, making it a better option for larger enterprises.
Features
The features offered by accounting software are important as they help streamline business processes and automate tasks.
Quickbooks Online
Quickbooks Online offers a wide range of features, including:
- Invoicing
- Bill management
- Bank reconciliation
- Inventory management
- Sales tax management
- Payroll management
- Customizable reports
Xero
Xero also offers a range of features, including:
- Invoicing
- Bank reconciliation
- Inventory management
- Sales tax management
- Multi-currency support
- Payroll management
- Customizable reports
- Unique collaboration features
Xero's collaboration features make it stand out from Quickbooks Online. Teams can access the same financial data securely, making it easier to delegate and review work.
Ease of Use
The ease of use of accounting software is important since it impacts productivity and efficiency.
Quickbooks Online
Quickbooks Online is user-friendly, making it easy for new users to navigate. It offers tutorials and guides to help users get started.
Xero
Xero is also user-friendly, but it has a steeper learning curve than Quickbooks Online. However, Xero offers training videos, guides, and a support team to help users navigate the software.
Final Thoughts
Both Quickbooks Online and Xero are excellent accounting software options, and both have their unique selling points. Quickbooks Online is a better option for larger enterprises due to its pricing and advanced features, while Xero is suitable for small and medium-sized businesses due to its affordability and collaboration features. Ultimately, the choice between the two depends on your business needs and budget.