QuickBooks generally follows a tiered pricing model with several plans, ranging from basic options for self-employed individuals to more advanced solutions for larger enterprises. This approach allows businesses to scale their subscriptions as they grow, but it also means that some features are only available in higher-tier plans. QuickBooks has different pricing based on whether you choose the online or desktop version. Furthermore, QuickBooks has historically had a more substantial presence in the US market, leading to greater familiarity among accountants and bookkeepers. Conversely, Xero tends to adopt a more simplified approach to some accounting functions, which can be advantageous for users who do not require complex accounting solutions. To make an informed decision, we recommend trying both platforms through their free 30-day trials.

Finaloop is exclusively focused on eCommerce businesses so they understand the pain points that are unique to eCommerce businesses. They use their own proprietary bookkeeping software but will also keep an up to date QuickBooks instance so that you can use that if you ever want to leave Finaloop. Finaloops pricing scales based on revenue and starts at $59 per month when billed annually. Finaloop’s pricing scales based on revenue and starts at $59 per month when billed annually. As part of your accounting software evaluation, decide whether Xero or QuickBooks for small business is a better match for your business needs.

Xero and QuickBooks Online alternatives

Xero and QuickBooks are two of the biggest names in the accounting software space, and they are highly ranked in our roundup of the best accounting software. Small businesses use them to track finances, generate financial reports, manage taxes and payroll and track inventories. Overall, both platforms have many similarities and can help SMBs get their finances in order, but there are also some differences that can’t be glossed over. Bench – Similar to Pilot, Bench is an online bookkeeping service that pairs you with dedicated in-house bookkeepers to keep your financials and books up to date. Unlike Pilot, they use a proprietary accounting software to manage your books. QuickBooks was launched in the US way back in 1992 and is now the market leading accounting software for small and medium size businesses.

However, there are some key differences between the two platforms that make Xero a more user-friendly and feature-rich choice for mobile access. Xero can integrate with Gusto for payroll accounting, and QuickBooks users can manage payroll with an additional plan. Both platforms also offer multicurrency support and mobile applications to scan receipts and easily track them. QuickBooks is the leading accounting software for small businesses, designed to simplify financial management and empower should you choose xero over quickbooks growth. With a user-friendly interface and a comprehensive suite of tools, QuickBooks streamlines tasks like invoicing, expense tracking, and reporting, giving you a clear picture of your financial health. From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs.

Additionally, QuickBooks offers more advanced choices for budgeting, forecasting, and profitability analysis than Xero. Online support is offered around the clock (at no extra cost), with a two-hour response time. Like Xero, these integrations cover anything from eCommerce to payment processing, payroll services, and more. Also, it’s easier to create, preview, and send invoices to your customers with Xero, with the whole process completed in just a few clicks. You can quickly run reports based on specific date ranges, whereas Xero’s reporting tool is slightly clunky. Other countries, such as New Zealand and the United Kingdom, have different pricing plans and rates.

Choose Webgility: Make the right choice for your business

Both Xero and QuickBooks offer 30-day free trials, so we highly recommend testing both platforms with your real workflows before committing. On the contrary, Xero wins hearts with its huge ecosystem of integrations. It’s especially popular with startups and merchants that need flexibility, easier reporting, and better multi-currency handling.

Xero vs Quickbooks: Which is Best for Your Business?

It will save you countless hours of manual work and make things much easier for yourself especially when it comes to tax season. Lots of software tools are ‘nice to haves’, but your accounting software is not. FreshBooks – FreshBooks offers affordable pricing with plans starting at $17 per month. However, FreshBooks started primarily as an invoicing software and is geared towards freelancers and self-employed people who bill hourly or offer service based businesses. They have great time tracking and client management tools, but it isn’t as suited to the eCommerce use case as our recommended tools.

What we don’t like about QuickBooks Online:

Xero and Quickbooks Online are two of the most popular accounting software solutions for small businesses. When comparing Xero to Quickbooks Online, it’s clear that Xero is simpler and easier to use than its competitor. For international accounting needs, Xero’s approach to multicurrency transactions is more intuitive than QuickBooks’ implementation.

Xero Central, as it is known, contains a wealth of articles, how-to guides, videos, and FAQs, allowing users to quickly find answers to common questions or troubleshoot issues independently. In addition to its knowledge base, Xero offers a responsive community forum where users can engage with other Xero customers and experts, share tips, and receive valuable advice. This combination of resources empowers users to resolve issues or find answers quickly, without the need for direct support. Moreover, Xero has a powerful report tracking feature that allows users to track financial data across multiple dimensions, such as by location, department, or project. This feature is especially useful for businesses that need to keep a close eye on the performance of different segments, enabling them to make informed decisions for growth and expansion.

• With affordable entry pricing, unlimited users, and robust project tracking and document management features, Xero offers high value for cost-conscious early-stage businesses.
• On the other hand, Xero typically uses a subscription-based model with fewer tiers, often focusing on providing unlimited user access across its plans.
• The platform automatically handles exchange rate fluctuations and provides clear reporting in your base currency.
• All your data is automatically backed up to the cloud and synced across all your devices, so any changes made on the move will be updated when you next login in your laptop or desktop.
• When your trip is complete, the application automatically logs your mileage and can generate detailed mileage reports.

It works with major tools to handle CRM, ecommerce, inventory, payroll, and expenses. Some important ones include PayPal, Shopify, TSheets, Expensify, and Webgility. Although Xero has a few more integrations, QuickBooks stands out with strong and dependable options tailored to SMBs. QuickBooks Desktop and Enterprise versions provide even deeper customization options for accountants and analysts compared to Xero.

• It’s especially popular with startups and merchants that need flexibility, easier reporting, and better multi-currency handling.
• While QuickBooks Online also offers apps for both iOS and Android, there have been reports of occasional compatibility issues and app crashes on certain devices, which can hinder the user experience.
• As the market leaders, partners are eager to integrate with both companies.
• By examining their strengths and weaknesses, we aim to provide the insights needed to determine which accounting solution best fits your business’s unique requirements.

We provide the best small business accounting, payroll and sales tax services at an affordable cost. When it comes to direct customer support, Xero provides email-based support, which is available 24/7 to all users, regardless of their subscription level. Xero’s support team is known for its timely responses, often addressing customer inquiries within a few hours. This is especially beneficial for small businesses operating outside regular business hours or in different time zones.

In the constantly changing landscape of small business management, selecting the right accounting software is essential. Yes, both Xero and QuickBooks are designed to be user-friendly for non-accountants. That said, some accounting tasks—like year-end reporting, tax filing, or setup—may still benefit from a professional’s guidance. If you want peace of mind, consider outsourcing to a certified advisor. Choosing between Xero and QuickBooks can be tricky, as both platforms deliver strong core features tailored for SMBs.

Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers. Entering expense reports and invoices is straightforward in QuickBooks. You also can open a Cash Account offered by Atomic Brokerage which allows you to earn interest on your cash through a cash sweep program. This page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website.

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Schedule your payments in advance, whether you’re paying one bill or multiple bills to the same supplier. And of course, all your bills, their status, and their related data, is stored and organised within the Xero accounting software. Frankly, we love that there are two companies competing like this because they’re pushing each other on feature development as well as keeping each other’s pricing in check. If one company launches a new feature and is winning customers based on it, the other will soon add it, and customers of both companies benefit. This healthy competition adds to our confidence that you can’t go wrong with either.