Comparing Cloud-based Accounting Software QuickBooks Online vs Xero
When it comes to cloud-based accounting software, QuickBooks Online and Xero are two of the most popular choices. Both of these applications offer a wide range of features and benefits, including real-time data access, automatic bank feeds, and mobile accessibility. In this post, we’ll compare QuickBooks Online and Xero, giving you all of the information you need to decide which platform is right for your business.
Pricing
One of the most significant differences between QuickBooks Online and Xero is their pricing. QuickBooks Online has five different pricing tiers, ranging from a simple plan at $25 per month to an advanced plan at $150 per month. In contrast, Xero has three pricing tiers ranging from a basic plan at $11 per month to an established plan at $62 per month. While QuickBooks Online's advanced plans offer more features, they come with a higher price tag. On the other hand, Xero's mid-tier and high-tier plans can offer more value for the money.
Features and Functionality
Both QuickBooks Online and Xero are feature-rich platforms, making it difficult to differentiate between them. QuickBooks Online's interface is straightforward and more intuitive, making it an excellent option for first-time users. It also provides a wide range of features, including inventory tracking, time tracking, and project management tools.
In contrast, Xero offers an integrated time tracker and customer relationship management tool. It comes with a standard dashboard that displays your financial position, account balances, and cash flow. Additionally, Xero provides a financial advisor dashboard that enables accountants to manage all of their clients’ finances from a single location.
User Experience
The user experience is a crucial element for any software, and it can impact productivity and user engagement. QuickBooks Online features simple navigation that is easy to use without prior knowledge in accounting software. It also provides detailed tutorials, videos, and online support resources to help users.
Xero's user experience is built for more experienced users, with many features and tools packed into a single dashboard. It's interface design is clean and Modern, but its can be cluttered with too many options for beginners. Xero also offers a range of educational resources such as video tutorials, blogs, and user guides for its users.
Integration and Add-Ons
QuickBooks Online and Xero both have an extensive list of integrations and addons, including payment processing, e-commerce, payroll, and inventory management, among others. QuickBooks Online's add-ons are vast and can offer many features and integrations to users. It has over 500 integrations that allow businesses to automate and simplify their workflows.
With over 800 integrations, Xero has one of the most extensive directories of add-ons. Xero's software can integrate with a wide range of business management applications, including point-of-sale, inventory management, and project management tools.
Final Verdict
When it comes to choosing between QuickBooks Online and Xero, it ultimately comes down to your business needs and preferences. QuickBooks Online is more accessible for first-time users, while Xero's functionality and integration options may make it a better choice for established businesses. Regardless of which option you choose, both offer the capability to partner with your accounting professional for better collaboration and insights.
We hope this comparison helped you make a more informed choice. However, if you are still unsure, give both platforms a try on their free trial periods.