QuickBooks vs Xero: A Comparison of Accounting Software
Choosing the right accounting software is crucial for small businesses. It saves you time, resources, and ensures your financial records are in order. Thankfully with cloud accounting software, you have access to features such as automatic bank feeds and online invoicing. While there are many accounting software options in the market, most businesses choose QuickBooks or Xero. In today’s post, we’ll compare the two accounting giants so you can determine which is the best cloud accounting software for your business.
Integrations
Both QuickBooks and Xero offer extensive app marketplaces that provide integrations with popular e-commerce tools, POS systems, CRMs, project management tools, and more. Xero offers over 800 integrations, while QuickBooks offers 650+ integrations. Although Xero has a few more integrations, QuickBooks offers integrations with popular software such as PayPal and Shopify.
WINNER: TIE
Ease of Use
QuickBooks has traditionally been more popular among small businesses due to its simple, intuitive interface. It is easy to navigate, and users can set up their accounts quickly. On the other hand, Xero offers better customization options and is better suited to businesses with complicated accounting requirements.
WINNER: QuickBooks
Price
When it comes to pricing, QuickBooks offers three different pricing tiers: Simple Start, Essentials, and Plus. Plans start from $15/month and go up to $35/month. In contrast, Xero offers three pricing plans starting at $11/month and going up to $62/month.
WINNER: QuickBooks
Customer Support
Both QuickBooks and Xero have extensive knowledge bases, tutorials, and user communities to help customers solve issues. QuickBooks offers phone support for customers, while Xero only offers email support. QuickBooks also offers a live chat option, making it much easier to contact their support team.
WINNER: QuickBooks
Features
Both QuickBooks and Xero offer a wide variety of features. QuickBooks offers features such as cash flow projections, sales tracking, and bill management. In contrast, Xero offers more advanced features such as inventory tracking and purchase order management.
WINNER: Xero
User Feedback
QuickBooks has been in the market for longer than Xero and is used by more than 4.5 million customers globally. While Xero has less market share than QuickBooks, it has a loyal following and is better known for its customer support and cloud-first approach.
WINNER: TIE
Conclusion
Both QuickBooks and Xero have their pros and cons. QuickBooks is an excellent option if you're looking for an intuitive interface, competitive pricing, and excellent customer support. While Xero offers more robust features, better customization options, and an excellent inventory system.
At the end of the day, the decision comes down to your specific business requirements. If you're a small business looking for affordable, straightforward accounting software, QuickBooks might be the way to go. If you're a larger business with complicated accounting requirements, Xero might be the better option.