Xero vs QuickBooks for Accounting Features, Fees, Support

While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit. One of the advantages of using Xero is that it can save businesses time and money. With Xero, businesses can eliminate the need for paper records and reduce accounting fees.

QuickBooks Online came out on top for several features, ease of use, and customer support among others, but Xero wins in pricing. We’ll explain our Xero vs QuickBooks comparison findings in greater detail in the following sections. A Live Bookkeeper cannot begin cleaning up your past books until they receive the required supporting documentation, which your bookkeeper will request from you after your first meeting.

Reporting: QuickBooks Online Wins

Xero has no limit to how many users can access data, whereas QuickBooks limits this to 40 with its Enterprise plan. We offer phone support, live chat and screen sharing, all free of charge. Even though Xero offers a tempting $9/month plan, the reality is that it's too restrictive for anything but the smallest side hustles that need less than five invoices and bills per month. For companies that need more than the standard Xero and QBO reporting can offer, they can make use of add-ons and integrations with both apps. Xero does add more customization in places, but is a little more clumsy with its reports.

On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances.

How Xero stacks up against other software

1. While it’s not part of our case study, we evaluated Xero vs QuickBooks Online in terms of assisted bookkeeping.
2. Ironically, we don’t recommend this plan to freelancers due to its lack of tools, even though we do recommend QuickBooks as the best accounting software for the self-employed.
3. QuickBooks has an excellent reporting suite, especially if you can budget for the Pro plan ($70/month) with enhanced reports and project profitability.

Xero supports unlimited users and grows with your business, making it a more suitable choice for mid-to-large-sized businesses. Some small businesses may also benefit from using Xero but may find that the learning curve of the software and the limitations of Xero’s lowest-cost plan may not be worth the time and expense. Xero acts as a central hub for your accounting, and by integrating apps and tools, you can see all your financial information in one place. We have apps for payments, payroll, reporting, project management, and more. Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app.

Best Free Accounting Software of 2024

She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor's degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications. Depending on the plan you select, QuickBooks Online’s monthly prices run from $30 for the Simple Start plan to $200 for the Advanced plan.

In contrast, all Xero plans offer unlimited users and its highest-tier Established plan is a more affordable $78 per month. 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 $15 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. Ease of use gets the highest weight in this case study because we want to give more credit to easy accounting software.

We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers. Both do a great job of accounting for inventory and calculating the cost of your inventory sold automatically. However, inventory accounting is included in all Xero plans, while it’s only in the Plus and Advanced versions of QuickBooks Online. So, if you want a low-cost inventory management solution, what is cost allocation go with Xero.