Xero and QuickBooks are both accounting software options that allow small businesses to manage their finances. They offer similar features, such as keeping track of taxes, generating financial reports, integrating payroll, and storing inventory.
However, there are differences between the two programs, such as the features offered, pricing, customer service, and reviews. To help you decide which is right, we have compared the two software options and outlined their differences.
Xero vs QuickBooks: The Basics
QuickBooks is a software program that businesses can use to easily manage their finances, whether they outsource their accounting tasks or keep them in-house. The online version of QuickBooks allows up to 40 users to access the software, but some plans require each user to have their own account.
On the other hand, Xero is designed to accommodate an unlimited number of users, making it the perfect choice for businesses with a team of in-house bookkeepers or accountants.
Xero vs QuickBooks: Target Users
QuickBooks is better suited for small businesses that don't have an accounting background, as it has a user-friendly interface designed to make accounting easier. It also has more robust inventory management tools than Xero, which is more geared towards accountants and bookkeepers.
Xero is a great choice for businesses that must monitor their project outcomes accurately. With Xero, you can track the costs associated with each project and compare those expenses to what you estimated for profits. It also can be used for businesses expanding into international markets, as it supports multiple currencies.
Xero vs QuickBooks: Pricing and Features
Xero provides a convenient way to store, retrieve and manage receipts through its Hubdoc feature, while QuickBooks lets you keep track of your receipts and other documents through its mobile app and online platform.
With Xero and QuickBooks, you can stay on top of your business finances. Xero's least expensive subscription plan enables you to produce and accept up to 20 invoices. Additionally, partner applications that initiate financial transactions can be combined with your invoice limit. The more costly plans have no restrictions concerning invoices. Tracking mileage, sending out invoices and getting a comprehensive overview of your business finances are all possible with Xero and QuickBooks.
Xero does not have a limit to the number of people who can access its data, while QuickBooks places a limit of 40 users with its Enterprise plan. For the other plans offered by QuickBooks, each user has to pay for their own account. With the Online version, up to 25 users can access the data for free, as long as you pay for the Advanced plan.
Conclusion
Xero and QuickBooks are two great options for small businesses regarding accounting software. QuickBooks is a great choice if you need to use desktop software and if you want to assign accounting tasks to a bookkeeper or accountant. Xero is the better option if you need online software and want to give multiple users access. Both of these programs offer features that are easy to use and have competitive pricing.
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