Like QuickBooks, Xero has a function to automatically calculate sales taxes for each invoice, as well as state or city taxes. A tax default can be set for any purchase, and Xero offers an integration with Avalara TrustFile in order to help you file your returns. Xero’s software also lets you map your accounts to different categories of tax form, keeping everything organized. If you’re in the market for accounting software, you might be feeling overwhelmed by all the options out there. While Xero and QuickBooks are wildly popular, they’re not the only options available. There are a number of alternative accounting software programs that can offer powerful features and a user-friendly interface.
- Similarly, all of Xero’s plans are often 50% off for the first three months.
- Can support larger small businesses with dozens of employees; all three plans include an unlimited number of users.
- This software is best suited for small to mid-sized businesses, although its Advanced Plan that supports up to 25 users does make it a viable option for larger businesses.
- Both have great A/P features, but QuickBooks Online is slightly better due to its ability to generate recurring payments.
- Phone wait times are often short, but the helpfulness and knowledge of representatives vary, so resolving your issue may take some time.
Alternative Accounting Software Options
It also offers a 30-day free trial so you can test drive the software before committing to a paid plan. 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. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills. Xero and QuickBooks Online are both powerful accounting software solutions for small businesses.
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Customer Service
However, when you compare features, QuickBooks Online inches ahead for its stronger feature power and utility entities revenue recognition task force set, ease of sharing with accountants and customer support. The QuickBooks Advanced plan costs $200 per month, supporting 25 users. It includes everything in Simple Start, plus bill management tools and a time tracking ability for adding up billable hours.
Unlimited users for a low cost
All plans also include receipt capture, expert support, and out-of-the-box integrations. 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. QBO has the advantage of more time on the market to evolve to their customers’ precise needs and user flows. Both QuickBooks and Xero are easy to set up and offer a huge range of banking integrations for many regions.
This includes the availability of integrations for payroll, time tracking, and receiving e-payments. We also evaluated whether an electronic bill pay integration was available. Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email. Software providers also receive points based on other resources available, such as self-help articles and user communities. Finally, they are awarded points based on the ease with which users will find assistance from independent bookkeepers with expertise in the platform. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections.
Xero has a robust set of features, an impressive number of integrations, and strong mobile apps for accounting on the go. You can also sync your bank accounts for automatic tracking and reconciliation. However, keep in mind that the entry-level Early plan only supports 20 invoices and five bills per month, so if you regularly exceed that, then you’ll need to upgrade.
In addition, Xero has a far more user-friendly interface than QuickBooks, so its ease of use makes it the perfect choice for the self-employed and those with less accounting experience. Accounts & Legal Consultants shared how Xero successfully managed the accounting for one of their large clients with 50 stores in the UK. Xero told them that the soft limits for transaction volume are around 2000 sales, 2000 purchases and 4000 bank lines per month, after which Xero’s performance “deteriorates dramatically”. QuickBooks has an excellent reporting suite, especially if you can budget for the Pro plan ($70/month) with enhanced reports and project profitability.
You love minimalist user experiences
Meanwhile, a vertical sidebar can take you to more in-depth dashboards dedicated to topics including Workers, Taxes, and Reports. QuickBooks also offers a number of tailored reports, including QuickBooks reports for nonprofits, which let organizations track their donations and finances with one tool. Still, if your business relies heavily on other software services, Xero is a better bet then QuickBooks for making them all work together and ensuring everything is easily accessible. Xero’s raft of expensing abilities allows you to scan receipts to record and sample chart of accounts for a small company track expense claims, slotting each expense into the best category for a report. The Established plan also supports a multi-currency function, which converts 160 different foreign currencies into your business’s local currency.
With features like automatic expense tracking, a user-friendly interface, and extensive reporting options, QuickBooks aims to streamline financial management for small businesses. payroll withholding It’s particularly well-suited for businesses who prioritize an all-in-one solution. This makes it the best accounting software we’ve researched and helped it to edge out Xero in this round. Depending on several factors, including the size of your business and the type of business you run, either QuickBooks or Xero will be your best choice.
