Xero’s time-tracking feature is included in its project management tool. QuickBooks offers advanced invoicing features such house banking scandal as customization, recurring invoices, email sending, and payment options. We will examine the differences between Xero and QuickBooks in detail and determine the best accounting software.
Xero and QuickBooks Online alternatives
It imports bank feeds in real time and uses machine learning to suggest and remember categorizations. QuickBooks Online simplifies this while maintaining flexibility for growing businesses. Xero helps handle bookkeeping, invoicing, and reporting, making it ideal for startups and merchants aiming to improve financial processes and work with accountants. It stands out because of its exceptional multi-currency support, easy bank reconciliation, user-friendly design, and a marketplace of 1,000+ tools to connect. The platform primarily focuses on automation, real-time collaboration, and unlimited user access across all price plans.
The platform’s tax tracking is easy to use and reliable. QuickBooks offers a wide variety of standard reports in its Desktop and Enterprise versions. Xero includes key financial reports like profit and loss statements, balance sheets, cash flow statements, and trial balances. Customers can check and pay their invoices, look at account statements, and communicate with businesses.
Best Choice for Medium and Large Businesses
Advanced features require apps. Built-in tracking for simple needs. Its philosophy emphasizes beautiful, easy-to-use software and collaboration. Good core reports, customizable, relies on add-ons for deep analytics. 100+ reports, highly customizable on higher tiers. Built-in on Plus & Advanced plans.
QuickBooks also has options what is asset turnover for management reports, custom reports, and creating new reports on invoices, sales, bills, expenses, etc. QuickBooks provides report templates for different categories, such as business overview, sales, expenses, employees, payroll, and more, to cater to various use cases. It also syncs with the QuickBooks Workforce app to track time for payroll.
- These extensions help Xero serve as the financial hub for service-based, retail, and online businesses.
- It stands out because of its exceptional multi-currency support, easy bank reconciliation, user-friendly design, and a marketplace of 1,000+ tools to connect.
- It supports foreign exchange bank accounts and payments in any currency.
- Wee Chun Ang is a seasoned professional with expertise in business expansion, global workforce solutions, accounting, and strategic marketing, backed by a strong foundation in financial markets.
You can build detailed billing schedules, adjust prices, and link them to project management tools. The platform provides competitive rates, particularly for businesses processing high volumes. It is ideal for international businesses or ecommerce sellers with global customers. It provides detailed reports on reconciliations and offers full audit trails that track and monitor deleted, modified, or newly added transactions within your account. Users can set up bank rules for recurring patterns, and QuickBooks will auto-assign categories, making bookkeeping faster for high-volume users.
Integrations and Automation
Choose QuickBooks if you prioritize mobile-first features and native payroll capabilities. QuickBooks leads with 750+ app integrations and a more intuitive automation builder; Xero supports 600+ apps and offers basic automation with solid document management. In this guide, we’ll break down the key similarities and distinctions between Xero and QuickBooks to help you confidently choose the right software for your business in 2025. Xero has basic inventory tools suitable for simple product lists but not for complex item management. QuickBooks offers more features, but this also means a longer learning curve.
You should choose QuickBooks if…
QuickBooks also accurately calculates, files, and pays payroll taxes with tax penalty protection. Users can run payroll anytime, and the teams will get paid on time or the same day through direct deposit. While Xero doesn’t include built-in payroll accounting functionality, it integrates smoothly with Gusto for streamlined payroll processing.
Undecided on Xero and QuickBooks Online?
Users get insights into business cash flow with the status theoretical framework versus conceptual framework of expense claims, bills, and details of money coming in with charts and graphs. It lets users view transactions, invoices, or bills in a foreign currency. It supports foreign exchange bank accounts and payments in any currency.
Mobile Applications
- If you need deeper tools, choose QuickBooks.
- It works with major tools to handle CRM, ecommerce, inventory, payroll, and expenses.
- QuickBooks allows users to customize their invoices by selecting templates, adding logos and brand colors, choosing fonts, and editing sections.
- QuickBooks is advanced accounting software that can manage a company’s fixed assets.
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Q. Which is better for inventory management? Q. Does Xero have payroll? Check with your accountant first, but most modern firms support both platforms. Unlimited users usually make it more cost-effective as teams grow. More extensive built-in reporting, especially on higher tiers.
It also offers add-ons like Xero Projects and Xero Expenses for business planning and connections to third-party apps for financial management. QuickBooks is a popular all-in-one accounting software for small to medium business. You can also enter and track invoices and expenses, connect bank accounts, receive payments, manage taxes, payroll and inventory and receive detailed reports that can help you track cash flow. Its biggest advantages are its unlimited users on all plans, its clean and intuitive user interface, and its excellent bank reconciliation workflow.42 Both platforms boast large app marketplaces connecting to hundreds of tools for CRM, POS, e-commerce, payroll, payments, and more. Compare various accounting software options
Xero stands out for its user-friendly interface and flexible pricing structure that includes unlimited users across all plans. If you’re trying to select an accounting platform that will grow with your business while managing costs effectively, both Xero and QuickBooks offer competing products starting at $29 per month. Melio is ideal for nonprofits, contractors, freelancers, and SMBs, offering robust management of business payments for clients. When looking for the best invoicing software besides Xero and QuickBooks, the best options will vary based on the business size. However, novice users will find it difficult to navigate the software because its menu bar contains a few options.
Xero is suitable for small businesses that want simple accounting software without too many advanced functions. Choosing accounting software is a long-term decision that can be confusing, particularly when both tools claim to support small businesses. QuickBooks offers more powerful features for US-based businesses, including advanced reporting, job costing, and 24/7 live chat and phone assistance. It is popular among accounting firms and businesses with less than 25 users, requiring advanced invoicing customization and industry-specific features. These integrations streamline tasks like inventory management, time tracking, and accounting, enhancing users’ financial management capabilities. Xero simplifies end-year tax returns by allowing users to import bank transactions into their accounting software securely and automatically.
Xero offers payroll in some regions but requires add-ons or integrations in the U.S. Ease of use may depend on whether you prioritize simplicity or advanced reporting and integrations. Both automate reconciliations and reports, but Xero offers more seamless AI-driven workflows across multiple currencies. Plans include unlimited users, and discounts are sometimes available for new signups.