Introduction
Ah, freelancing. The best and worst of both worlds: you get the amazing freedom to work anytime and anywhere you like, but you also have to deal with the tedious task of managing your finances on your own. Fortunately, there are accounting software applications that can help you with the task.
In this post, we will compare two famous accounting software for freelancers: Xero and Quickbooks Online. We'll provide the details and let you choose which software is best for your business.
Quick Overview
Before we dive in deep, let's take a quick glance at both platforms.
Xero: Ideal for small business accounting tasks with tools for banking, invoicing and payroll.
Quickbooks Online: Popular for its navigability and comprehensiveness in tools for invoicing, tax return and business reports.
Both platforms offer cloud-based services, integrations with other online apps and easy-to-use mobile interfaces.
Features
Invoicing
Both Xero and Quickbooks Online offer easy invoice creation features. However, Xero is known for its customization options and drip invoicing functionality. Quickbooks, on the other hand, has a simpler design making it easier to navigate.
Banking
Xero users have praised its bank reconciliation capabilities, automatic transaction import and multi-currency support. Quickbooks has similar functionalities but some users have reported issues with bank syncing.
Payroll
Both platforms offer payroll services to businesses. However, Xero's payroll functionality is limited to only a few countries like Australia and the UK, while Quickbooks payroll is available in a wider range of countries including the US, UK, and Canada.
Reports
Quickbooks users love its ease of navigation and range of business reports. Xero is great for generating customized reports and has more than 500 integrations, making it possible to analyze different areas of a business.
Pricing
Xero's pricing starts from $11/month, with the highest plan priced at $62/month.
Quickbooks online pricing starts from $25/month, with the highest plan priced at $150/month.
Conclusion
Both accounting software applications work well for freelancers, but Xero might be the better option if you're dealing with clients outside your country. Quickbooks may be a better option if you need a wider range of reports or if you're considering different pricing plans. Ultimately, the best software for you will depend on your business needs and budget.