QuickBooks vs Xero 2023: Which Software Is Better for You?

If you count QuickBooks Desktop users, that number rises to 8 million. With more than 3 million users worldwide, Xero is popular but not as ubiquitous as QuickBooks Online. Xero’s Early plan, recommended for self-employed people or brand-new businesses, allows 20 invoices per year. If you only send out an invoice or two each month, the Early plan is an affordable option at $13 per month. Otherwise, you’ll have to bump up your subscription or consider QuickBooks Online plans. Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions.

If you have Windows, you’ll need to be running Windows 7 or newer, with at least 4GBs of RAM and a processor comparable to the Intel Core i5. Both section 338h election sample clauses services are available on all the most common devices and browsers. Here’s our comparison of the core features provided by Xero and QuickBooks.

Switch to Xero in a click

Be prepared to give Jet Convert admin level access with your QBO file. The decision to migrate from QuickBooks to Xero is an important one and should be made after carefully evaluating your business requirements. While this, again, can come down to user preference, I like the ability to just jump in and get started. One of the major differences between Xero and QuickBooks Online is the setup process. One of the things I like about this Xero alternative is the fact that you can place your cursor over one of the categories listed in the vertical menu to see what features are available in that category. If you just want to get started and add things as you go, Xero may not be for you.

  • Both Xero and QuickBooks Online integrate with many third-party add-on apps that supplement the basic accounting features, adding more capabilities and efficiency.
  • Beyond built-in integrations, QuickBooks offers more than 750 connections with other platforms — a quantity that impressed us.
  • However, the Trustpilot scores demonstrate that Xero wins on support.
  • Suppose you need to move from a less popular platform, like Sage, Wave, Freshbooks, Bench, etc – MMC Convert will handle that with ease.

These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one. Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero. QuickBooks Online is an industry standard with more than 5 million users worldwide.

Another option is Wave, which is a free accounting software program that includes invoicing, payroll, double-entry and sales tax tracking. Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit. QuickBooks and Xero both offer great mobile apps for you to run your business from a smartphone. The main apps also garner similar ratings on the Apple and Google app stores. Xero Expenses and Xero Projects are both available for users on the $70 Established plan. QuickBooks Time and QuickBooks Projects can be accessed on the $55 Essentials plan and the $85 Plus plan, respectively.

Converting from Xero to QuickBooks Online

All plans include 24/7 live chat support; phone support is available 5 a.m. This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small businesses that require more than five users. It’s also less expensive than QuickBooks Online and a bit easier to use, thanks to its customizable dashboard and simple layout. Our partners cannot pay us to guarantee favorable reviews of their products or services. There is a lot more information in the exported Xero file than you can import into QBO.

Both Xero and QuickBooks Online can be used and synced with online payments processing transactions from different online payment processors. QuickBooks and Xero both have good support and training options, but QuickBooks has phone support while Xero does not, earning it a research score of 4.7 – nearly double Xero’s 2.4/5. Similarly, all of Xero’s plans are often 50% off for the first three months. This means that Xero Early may be as cheap as $6.50 per month when 50% off, while QuickBooks Simple Start would cost just $9 a month, provided it is offering the same deal.

The HubSpot Customer Platform

See how Xero makes it easy for small businesses to stay on top of their finances and focus on doing what they love. Xero’s cloud-based software is a QuickBooks alternative that means business – whenever, wherever you are. If you’re an accountant or bookkeeper, find out about methods for converting client data to Xero.

Step #2 – Import Customers and Vendors into QuickBooks Online

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments. Both the accounting software are built on the similar platform and intended for similar audience i.e., small and medium sized businesses. But it would not be wrong to say that, it is good to start with Xero but if your business is growing, QuickBooks will offer you the scalability that you need.

You can also automatically record and match customer payments, accept tips via invoices, and split estimates into several invoices. We like that the latter feature, which isn’t common in accounting software, boosts cash flow for businesses operating on estimates. QuickBooks includes standard invoicing features and advanced tools. Its standard features include creating invoices from the mobile app and customizing invoices with your company logo and branding. Like most platforms, you can also use QuickBooks to view invoice payment status and remind clients to pay their bills. Other standard features include one-click payments, recurring payment invoices, adding billable hours to invoices and converting estimates into invoices.

Xero is also ideal if you’re seeking accounting software that grows with you. All Xero accounts allow unlimited users; many other platforms cap user allotments. You can upgrade to a higher tier when the time is right, not when you meet an arbitrary upper limit.

Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. Once all is reconciled, then compare the balance sheet and profit and loss reports for all dates using accrual and cash methods in QBO with those you saved earlier from Xero.

Do Xero and QuickBooks Online Offer Payments Processing?

Xero serves two million users worldwide, with leading cloud accounting market share in New Zealand, Australia, and the U.K. Again, if you opt out of the free trial, you’ll get 50% off the base fee for your first three months of service. Then, we award each piece of software a rating out of five for each of these categories to understand how they compare against each other. Aside from helping us to determine which solution is stronger overall, these scores also help us to determine which product is better suited to different types of businesses.