Xero vs QuickBooks: Key Differences & Which Is Best 2024

It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image. On the other hand, Xero lets you add your company logo compilation vs review vs audit and edit fields, but you can’t change the invoice colors. Another notable difference is that QuickBooks Online lets you upload your file of transactions, so you aren’t required to connect your bank account. With Xero, you have to connect your account to reconcile your transactions.

They both have an app, and pricing based on a monthly subscription model. First-time QuickBooks customers can choose to explore QuickBooks without committing to a plan by accumulated depreciation definition signing up for a 30-day free trial. You can also skip the free trial in favor of locking in 50% off for your first three months — but you can’t choose both. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.

1. The software must have bank integrations to automatically feed bank or card transactions.
2. This subscription plan is specifically for freelancers and independent contractors and is priced at $10 per month, then $20 per month.
3. Once connected, QuickBooks bank feeds give you an accurate, real-time view of your cashflow and finances.
4. SummaryThere’s a lot to think about when comparing and choosing accounting software for your business, and not only the monthly cost.
5. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits.

Why You Can Trust Fit Small Business

QuickBooks and Xero are both popular accounting software options for small businesses, but which one is right for you? Here, we break down the key differences in features, benefits, and pricing to help you choose the platform that best suits your business needs and budget. Currently, QuickBooks is offering two different specials; you can either try it free for 30 days or sign up and get a 50% discount on your first three months. Xero has automatic bank feeds, which means that all you have to do is make the initial connection between the software and your bank.

Clock employee time and billable hours

Xero offers this through Hubdoc so you can access your documents online. QuickBooks offers receipt and document organization with its mobile app as well as the online version. QuickBooks is generally praised for having a more intuitive basic accounting ideas — accountingtools user interface, especially for users without an accounting background. Xero, on the other hand, might be slightly more suited to accountants and bookkeepers due to its design.

Rest easy knowing your QuickBooks data is backed up

It’s easy to see why QuickBooks is a standout choice for small-to mid-size businesses. Its intuitive interface, robust feature set, and readily available customer support make it a comprehensive and user-friendly solution designed to help grow—and scale with—your business. Those who want to take their accounting on the go will appreciate the mobile app.

With Xero, you can view the number of items you have available and see the total value of stock on hand for any item. Its inventory management reports will show you how well different items are performing and which ones are the most profitable. And you can also easily add inventory Items to quotes, invoices and purchase orders to make billing easy. If you upgrade to at least the Essentials plan from QuickBooks, you can enter employee time by client or project and automatically add that time to invoices. For more robust scheduling and PTO management, you’ll need to purchase the separate QuickBooks Time product in addition to the accounting software. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business.

For more information, see our full Xero accounting review as well our list of the top Xero accounting alternatives. Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. Easy to share information with your accountant and to find QuickBooks experts and online resources if needed. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. We consider this a draw, and the ratings presented above are simply reflections of the average scores of Xero and QuickBooks Online on review sites.

Its intuitive interface and extensive customer support make it accessible to business owners with varying levels of accounting knowledge. Xero accounting software is a cloud-based system that helps small businesses manage their finances. The software offers a variety of features, including invoicing, tracking expenses and creating financial reports.