Xero’s automation builder is just as powerful, but it is not as user-friendly as QuickBooks’. Xero’s dashboards are still very functional but lack some polish and do not offer as much functionality. Both Xero and QuickBooks make connecting to financial institutions pain-free. QuickBooks can connect to thousands of global financial institutions. Once a bank account has been connected, you can view all your transactions in Xero. QuickBooks supports banks in 33 countries, and according to a survey conducted by QuickBooks, customers save an average of 10 hours per week.
Integrations and Automation
With user-friendly dashboards and detailed reports, small business owners can view key financial information at a glance. Xero can connect with over 21,000 global financial institutions and reports that users save roughly 5½ hours weekly. Xero and QuickBooks also offer mileage tracking, inventory management (Xero requires its time for those who benefited from a housing boom to pay up an additional inventory plan) and project tracking.
Which software offers better payroll and tax reporting features?
Xero offers simpler pricing with unlimited users at all plans, making it cost-effective for teams. Xero is cloud accounting software that caters to small and medium-sized businesses. Xero stands out with unlimited users, scalability, and global-friendly features, while QuickBooks shines in robust reporting, payroll, and U.S.-specific tax compliance. QuickBooks is ideal for small and medium-sized businesses needing inventory management, tax compliance, payroll processing, and integration capabilities. It also offers one-click access to help articles that users can refer to anytime. It offers tools for time tracking, project planning, budgeting, expense monitoring, quoting, and invoicing.
Best Fit by Business Type
Xero and QuickBooks both offer a comprehensive suite of key features tailored to meet the needs of small to medium-sized businesses. QuickBooks offers functionalities similar to Xero, such as tracking sales, managing customer accounts, payroll processing, and generating reports. For example, construction businesses can add job costing tools, while e-commerce companies can integrate with platforms like Shopify or WooCommerce. For businesses needing in-house payroll management, QuickBooks is often the better choice. QuickBooks has the edge here with its native payroll system, offering tiered payroll plans and automatic tax calculations. There’s no one-size-fits-all solution—your best accounting software depends on how your business works.
Customer Support
All financial products, shopping products and services are presented without warranty. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Daily phone support and 24/7 chat support in all plans. Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app. Feature set includes an excellent mobile app and suite of reports, capable invoicing features, plus automated bill and receipt capture through Hubdoc.
We believe everyone should be able to make financial decisions with confidence. Let your financial system do more than track performance. The choice between Xero vs QuickBooks isn’t just about which is better but where you want your business to head. Explore Microsoft Dynamics 365 Business Central, a modular ERP system built to unify accounting, inventory, CRM, HR, and operations. While both Xero and QuickBooks Online offer strong foundations, fast-scaling enterprises often outgrow them. To learn more about ways to optimize your financial operations, get in touch with us—Dynamics Square, a leading Dynamics 365 implementation partner in Canada.
What are the key differences between QuickBooks and Xero?
Despite their accolades, neither Xero nor QuickBooks are beginner-friendly platforms. That’s why at Tech.co, we have full-time product researchers to re-run this testing process regularly. 60% off for six months on all plans Great features; a simple, slick interface; and a competitively low price Basic accounting functionality for free
Advanced Features
Both platforms have established themselves as key players in the small and mid-sized business space. When looking for the best invoicing software besides Xero and QuickBooks, the best options will vary based on the business size. Xero has a clean, distraction-free interface where users can find what they want.
- Other countries, such as New Zealand and the United Kingdom, have different pricing plans and rates.
- QuickBooks Online (Plus and Advanced plans) has more robust built-in inventory management using the FIFO (First-In, First-Out) method.
- It allows users to compare transactions with bank statements and check them off one by one until the difference between them is zero.
- However, the provider is giving businesses an impressive 90% off for the first three months, bringing its entry price down to just $2 per month for its Early plan.
- Xero allows real-time cash flow updates and online collaboration with bookkeepers, employees, and accountants for tasks like submitting expenses and sending invoices.
Xero supports a slightly broader range of tax types too, including goods and services tax (GST), making the platform’s tax preparation tools stronger than QuickBooks’ overall, especially for businesses navigating complex tax processes. If you’re planning to use accounting software to optimize your tax returns, you’ll be in safe hands with either QuickBooks or Xero. So, to guide you through the process, this article offers a granular comparison of their pricing plans, usability, stand-out features, and support options. These integrations allow you to add additional payroll services, point-of-sale (POS) systems, and inventory management tools to enhance Xero’s core features.
Do both platforms support e-invoicing and tax compliance?
With affordable entry is the first pricing, unlimited users, and robust project tracking and document management features, Xero offers high value for cost-conscious early-stage businesses. 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’s balance sheets offer a powerful overview of your accounts.
- QuickBooks also offers an additional plan for sole traders (1 user) called QuickBooks Soloprenuer, which is available for just $10 monthly.
- Built-in on Plus & Advanced plans (FIFO method).
However, the provider is giving businesses an impressive 90% off for the first three months, bringing its entry price down to just $2 per month for its Early plan. Not only is Xero’s interface and typography quite outdated, but it also gives users poor visual feedback, which is why it wasn’t able to beat out QuickBooks in this category. All in all, this makes QuickBooks a better option for businesses that want to find resolutions quickly, without having to sift through tons of information. Xero offers tons of resources to help you resolve issues independently. While both providers let you resolve queries with a user forum and knowledge center, QuickBooks goes above and beyond by giving users access to an AI chatbot 24/7, as well as live agents during traditional working hours. The Xero App Marketplace covers categories including CRM, invoicing, inventory, time tracking, ecommerce, and more, with new entries being added regularly.
Both Xero and QuickBooks are top accounting solutions, but which one do you choose? Xero is a cost-effective accounting solution that would be ideal for contractors, marketing and sales teams, retailers, transportation firms and others. Xero’s user interface is not as polished as QuickBooks’, and I found it harder to navigate. The interface is well-designed and easy to navigate, and QuickBooks tools are also more intuitive.
Its philosophy emphasizes beautiful, easy-to-use software and collaboration. Built-in on Plus & Advanced plans. Basic inventory tracking; relies on app integrations for advanced needs. Built-in on Plus & Advanced plans (FIFO method). Robust invoicing, expenses, bank feeds (often praised for reconciliation). Clean interface, often preferred by business owners.
The ch 6 payroll practice test flashcards software connects with your bank accounts to import transactions automatically and supports manual data entry. That said, some accounting tasks—like year-end reporting, tax filing, or setup—may still benefit from a professional’s guidance. Both Xero and QuickBooks offer 30-day free trials, so we highly recommend testing both platforms with your real workflows before committing.
Payroll & Team Management
It’s best to consult an accounting software expert to ensure a smooth transition. Need help setting up or migrating toX Xero accounting software? So, consider the following factors when choosing the right accounting software for you. When comparing Xero vs QuickBooks in 2025, it’s clear that both are powerful cloud accounting platforms but the right choice depends on your specific business needs.
However, our research revealed that Xero’s AI toolkit is slightly more impressive, as the provider lets users automatically categorize budgets and forecasts – a capability not currently available with QuickBooks. Xero’s unlimited user caps allow large teams to track and manage financial data simultaneously. Whether you manage a big team or operate fully remotely, collaboration features help to improve the efficiency of the accounting process by streamlining employee and client communication. Xero’s reporting dashboard gives you an instant overview of how your business is tracking. All things considered, our research found that Xero’s and QuickBook’s invoicing features are neck-and-neck, and are actually some of the best we’ve researched – alongside those offered by Zoho Books. QuickBooks and Xero offer some of the best invoicing and quoting features in the industry.
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