This makes the difference between fixed assets and current assets it a versatile tool for small businesses that need to streamline their operations. Xero is cloud-based accounting software designed for small-to-medium-sized businesses. Its features include invoicing, bank reconciliation, expense tracking, and reporting. Xero’s scalable plans and app marketplace cater to an organization’s evolving demands.
QuickBooks also allows you to accept payments from debit or credit cards, as well as ACH payments, Apple Pay, PayPal and Venmo. The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $35 per month while the only current Desktop version, Enterprise, must be paid annually and start at $1,922 per year.
- If snapping photos of receipts to claim expenses on the go is a key mobile feature you’d like to have, regardless of plan level, QuickBooks Online might be a better fit.
- QuickBooks also allows you to accept payments from debit or credit cards, as well as ACH payments, Apple Pay, PayPal and Venmo.
- With QuickBooks Online, you can track expenses by project in the Plus plan, but you can’t compare it to estimated costs unless you have the Advanced tier.
- You can use QuickBooks to run roughly two dozen prebuilt accounting reports, whether using the mobile or desktop QuickBooks version.
QuickBooks Online is an industry standard with more than 5 million users worldwide. If you count QuickBooks Desktop users, that number rises to 8 million. With more than 3 million users worldwide, Xero is popular but not as ubiquitous as QuickBooks Online.
Basic inventory tracking in all plans
Xero took a hit for its lack of assisted onboarding support and new company wizard, but it does offer the ability to import beginning balances—a feature that QuickBooks Online lacks. Both have great A/P features, but QuickBooks Online is slightly better due to its ability to generate recurring payments. Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically.
Every service plan includes all the tools your business needs to oversee its finances from the desktop or via the powerful QuickBooks mobile app. There’s excellent core functionality for processing invoices and payments as well as add-ons for projects, time tracking and expenses. Xero offers basic inventory management insurance expense definition for retail businesses to track what they have in stock, add inventory to quotes and invoices, and report on what product lines are trending. We also recommend Xero if you’re seeking project profitability data alongside superior bill pay and expense management features.
Xero pricing
Whatever your needs, there’s sure to be an accounting software program that’s a perfect fit. QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers. The software helps users to keep track of their finances, customers and vendors. You can also use the QuickBooks mobile app to track mileage and run expense reports and cash flow statements. From the desktop suite, you can set custom rules for categorizing all expenses. You can add billable expenses to the invoices you send clients via mobile or desktop.
QuickBooks vs Xero: Which is best for your business in 2024
We also like that you can use Xero to set recurring bills, generate billing reports, and store and organize all your bills. This makes the tool as great for payment as for understanding your cash outflows. Plus, you get bill pay tools no matter which package you choose, although you can only pay five bills per month with the Early plan. Xero is an excellent solution for daily accounting activities like tracking and how to write an analysis essay paying bills.
More about Accounting
QuickBooks will automatically match receipts to recorded expenses or generate new expenses accordingly. You can review and pay outstanding bills in QuickBooks, and the platform will automatically record and match your vendor payments and invoices. First-time QuickBooks customers can choose to explore QuickBooks without committing to a plan by 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. Xero’s Early plan, recommended for self-employed people or brand-new businesses, allows 20 invoices per year.
