As a self-employed individual, managing your finances can be a daunting task. But that's where accounting software comes in handy. With a plethora of accounting software in the market, it can be a bit overwhelming to choose the right one for your needs. In this blog post, we'll compare Xero and QuickBooks Self-Employed, two of the most popular accounting software, to help you make an informed decision on which one offers the best value.
Xero
Xero is an online accounting software founded in 2006. It's designed for small to medium-sized businesses and offers several features such as invoicing, expense tracking, bank reconciliation, online payments, and project management.
Pricing
Xero offers three pricing plans:
- Early: $11 per month, allows you to send 20 invoices and quotes, reconcile 20 bank transactions, and enter 5 bills.
- Growing: $32 per month, allows you to send unlimited invoices and quotes, reconcile unlimited bank transactions, and enter unlimited bills.
- Established: $62 per month, comes with all the features in the Growing plan and offers additional features such as project management and multiple currencies.
Pros
- Robust invoicing features
- Excellent customer support
- Great user interface
Cons
- Expensive compared to other accounting software
- Limited document storage
QuickBooks Self-Employed
QuickBooks Self-Employed is an online accounting software designed specifically for self-employed individuals. It offers several features such as invoicing, expense tracking, and tax preparation.
Pricing
QuickBooks Self-Employed offers two pricing plans:
- Self-Employed: $15 per month, allows you to track your income and expenses, maximize your deductions, and estimate your quarterly taxes.
- Self-Employed and TurboTax Bundle: $25 per month, comes with all the features in the Self-Employed plan and offers additional features such as automatic tracking of mileage and expenses.
Pros
- Easy to set up and use
- Affordable pricing
- Integration with TurboTax for tax preparation
Cons
- Limited features compared to other accounting software
- Poor customer support
Xero vs. QuickBooks Self-Employed: Which One Offers the Best Value?
Both Xero and QuickBooks Self-Employed offer great features that cater to self-employed individuals. However, Xero is more expensive but offers robust invoicing features, excellent customer support, and a great user interface. On the other hand, QuickBooks Self-Employed is affordable, easy to use, and integrates with TurboTax for tax preparation.
Ultimately, the best accounting software for you will depend on your specific needs and budget. If you're willing to spend a little more and want a wide range of features, then Xero is a great option. However, if you're on a tight budget and need basic accounting features, then QuickBooks Self-Employed is the way to go.
Conclusion
Choosing the right accounting software can be a headache. However, we hope that after reading this blog post, you've gained a better understanding of both accounting software and which one offers the best value. Remember, when choosing the right accounting software, always consider your business needs, budget, and long-term goals.