Quickbooks vs. Xero: A Comparison of Two Invoicing Software Titans
If you're a small business owner or an entrepreneur, having an accounting and invoicing software is a necessity to keep track of your finances. Two of the most popular invoicing software out there are Quickbooks and Xero. But which one should you choose? Here's a comparison of the two:
Quickbooks
Quickbooks is a reliable invoicing and accounting software that has been around for over 30 years. It's designed to help small businesses manage their finances, including tracking sales, expenses, and taxes. It has a user-friendly interface, and you can easily create invoices, manage receipts, and reconcile bank statements.
Invoicing
Quickbooks enables you to create and customize professional invoices and track their status. It offers functionalities like recurring invoices, accepting payments online, automatic payment reminders, and setting payment schedules. Quickbooks has recently introduced a feature called “Snap and store receipts” where you can take a picture of your receipts and attach them directly to your invoices.
Accounting
Quickbooks has a reliable accounting system that includes features like generating financial reports, tracking expenses, and reconciling bank accounts. It offers various tax reports, including profit and loss, balance sheet, and cash flow statements.
Pricing
Quickbooks offers several pricing plans starting from $25 per month for the basic plan, which can handle up to five users.
Xero
Xero is a cloud-based accounting software that's popular for its accessibility and ease of use. It has a wide range of features that help small businesses manage their finances efficiently.
Invoicing
Xero's invoicing system is simple and user-friendly. You can easily create recurring invoices, receive payments online, schedule automatic payment reminders, and track invoice status. However, it doesn't have an option for taking pictures of receipts and attaching them directly to your invoices.
Accounting
Xero's accounting system is robust, including features like generating financial statements, tracking inventory, and reconciling bank accounts. Unlike Quickbooks, Xero also has project management functionality, which allows you to track expenses and revenue associated with specific projects.
Pricing
Xero offers three pricing plans starting at $11 per month. Its premium plan costs $62 per month, which can accommodate up to ten users.
Comparison
Both Quickbooks and Xero have excellent features that cater to small businesses' needs. Quickbooks has an advantage in invoicing features, while Xero has the upper hand in accounting features. Quickbooks is also more expensive than Xero, but it offers more users in its basic plan.
When it comes to customer support, both Quickbooks and Xero are excellent. Quickbooks offers phone, chat, and email support, while Xero has email and chat support.
The bottom line is that both Quickbooks and Xero are great accounting and invoicing tools. However, the choice ultimately depends on your specific needs and budget.
References
- Quickbooks. (2021). Invoicing and Accounting Software for Small Businesses [https://quickbooks.intuit.com].
- Xero. (2021). Accounting Software for Small Business Owners [https://www.xero.com].