Accounting is a complicated, time-consuming, frustrating and boring part of running a business. But, as the business world becomes more reliant on the cloud and working on-the-go, many small business owners will start to look at every aspect of how their business operates, including their accounting software. In this blog, we are going to read the comparison between QuickBooks vs Xero.
As we know, it is also true accounting and bookkeeping is also a vital part of running a business if you want to accept by the law and keep track of your finances. No matter how tedious it might seem it’s vital to know that money is coming in, where it’s being spent. And whether you are earning a net profit com to the end of the financial year. So that’s why we have decided to give you the best comparison of QuickBooks vs Xero.
So the thought of sending the next invoice and calculating a cash flow report fills you with fear, sit back and relax, as we take you through the software you can make your accounting easy in your small, medium-sized business.
Accounting Software’s Common Features
QuickBooks, Xero, FreshBooks, and ZipBooks have payment or billing features or project management features as standards. For payment and billing, you can expect-
- Quotes and Estimates – Produce and send Quotes and estimates for your customer. If they accept the quote, you can simply convert it into an invoice for payment.
- Bills and expenses – Record and store all of your business expenses, including one-off and recurring bills and expenses.
- Reconciliation – Reconcile all of your invoicing, expenses, payments, and more together with your checking account. This keeps everything in sync and will really help when it comes to managing your money and taxes.
- Invoicing – Quickly and easily produce and send customized invoices to your clients. You can also track overdue and paid invoices. This is one of the areas where you’ll save the most time using an online accounting app.
- Time-tracking – Track the time you spend on various projects and tasks, including hourly rates. Easily add times to your invoices and bill people quickly.
Managing the cash is merely one side of your business management tasks, but robust accounting software offers additional features.
QuickBooks has pretty much every feature for a small and medium-sized business that could possibly want out of accounting software. In spite of the fact that at the cost of being less beginner-friendly.
QuickBooks allows you to customize and send invoices, track and automatically log your expenses, generate reports, sort out your employee payroll. See an overview of taxes and even invite your accountant to work directly within your program to take even more pressure off you.
If you are looking into accounting software, it’s hard to get away from Intuit’s QuickBooks. It’s a mainstay on the market and has been for years. But it is the right choice for you.
- Connect to your Paypal, credit cards, bank, and other accounts.
- Automatic transaction import
- Automatic calculations, transactions and data organization.
- Keep records in accordance with FASB (Financial Accounting Standard Boards) for tax time.
- Access and automate reports and financial statements.
- Summaries for profitable customers, delinquent invoices, spending habits, and cost-saving.
- Online bill pays for clients.
- Track and schedule automatic bill pay.
- Snap and upload photos of business receipts.
- 24*7 chat support.
Easy to Use
QuickBooks is the middle ground of the apps in the post. Also, it is not quite as beginner-friendly as FreshBooks. But, once you watch some of the help videos it’s easy to get started thanks to the service’s slick design.
For the features that QuickBooks does it best, it can. When you are dealing with a full accounting suite there’s bound to be little overwhelmed when it comes to using it for the first time. Especially if you are not an accountant or inexperienced with the financial side of owning a business. And QuickBooks does the best it can to make sure that you’re on your feet that in no time
Xero has an almost similar feature set to QuickBooks. In spite of the fact that allowing you to give unlimited users access to your account instead of a maximum of five. So naturally, this makes Xero a better choice for larger teams (small to mid-sized business).
They’re so similar that, there is very little more to say about Xero in particular or how these features work – everything is covered by QuickBooks entry.
As you research accounting software, you’ll encounter Xero. Their mission is to provide simple software for small business needs. And they supply all the features that your business may need for day-to-day operations.
- Online payment option
- Track inventory and manage stock
- Payroll operation: payroll, pay stubs, reports
- Connect to your bank for easy transactions
- Daily updates and easy bank reconciliation
- Convenient customizable Xero dashboard
- Pay bills
- Record and manage receipts and expenses
- Track projects
- Professional quotes
- Financial reports and budget
- Online payment services like Stripe and Paypal
- Purchase orders
- Support multi-currencies
- Sales tax computation
- Manage fixed assets
- 24*7 online support
Easy to Use
Xero is a menace due to its features list and status as a full piece of accounting software. But unluckily it doesn’t fare as well as QuickBooks is getting you up to speed.
Xero’s design is great, but when you hover over submenus for the first time it’s easy to get lost and don’t know where to start. This isn’t helped by the fact that Xero is totally web-based in that the entire page has to reload for each different section of the software, rather in QuickBooks where the top elements and sidebar preserve at all times.
QuickBooks vs Xero
Both the QuickBooks and Xero setups take a bit of time. And there is a little learning curve to either one because they are both very customizable. Though they have set up wizards to help it may still be a little too much to get up and running as soon as possible.
In addition, both QuickBooks vs Xero excels at helping small businesses keep track of financial details. And their pricing works similarly, too. But, if you are a freelancer, neither plan may make financial sense because they are based on the number of people or users under your employ. If you have neither, you may be paying more for perks you don’t need.
Furthermore, as mentioned above, both QuickBooks and Xero offer similar capabilities when logging expenses, filing taxes and invoicing. Both of them geared toward small businesses with employees. And if you’re self-employed, you may find these extra perks unnecessary.
QuickBooks is a little harder to get up and running with, but a few tutorials later and you’ll have the best accounting software for small business. The main issue for preventing this app from expanding to larger businesses is its pricing model. It’s already a little pricey if you want to unlock all the features but adds to that a rising monthly cost for extra employees on payroll and price can Quickly skyrocket.
Meanwhile, Xero is great for small to mid-sized businesses. And, particularly for those who have a smaller number of clients at any given time. Although their pricing is more expensive in general and their cheapest plan limits you to five invoices and quotes.
Still, go out and check these apps by yourself, that gives a better experience.