QuickBooks vs. Xero: Which Accounting Software is Right for Your Small Business?

Accounting software is important for businesses of all sizes. At a basic level, it helps track expenses, monitor cash flow, analyze financial data, and optimize business operations. While all accounting software can handle these tasks, the additional features will help you determine which is better for your specific needs.

Small business owners often find themselves deciding between two top cloud accounting software options: Xero and QuickBooks Online. Choosing between both can be overwhelming as both platforms cover essential accounting needs.

So, how do you determine which one suits your business better?

In this article, we’ll find out which one offers the functionality you require based on its features, pricing structure, and more.

Xero: Features, Pricing, And Integration Level

Xero, a company from New Zealand, entered the accounting software market to make accounting tasks easier and more enjoyable. Xero’s user-friendly design has become a benchmark in the industry and its unlimited user access makes it ideal for startups and businesses with large teams.

Features:

Xero offers a set of accounting features at all plan levels, including:

  • Dashboard and reporting
  • Invoicing and quotes
  • Purchase orders
  • Sales tax management
  • Inventory tracking
  • Fixed asset management
  • Payment processor integration

Integrations:

Xero integrates with over 1,000 third-party platforms, including CRM systems, time-tracking tools, ecommerce platforms, email marketing tools, and debtor-tracking systems.

Pricing:

Xero offers three pricing plans:

  • Basic ($15/month): It includes 20 invoices, bill capture with Hubdoc, and cash flow snapshots.
  • Growing ($42/month): It offers unlimited invoices, quotes, and bank transaction reconciliation.
  • Established ($78/month): It includes multi-currency, project management, advanced analytics, and expense claiming.

QuickBooks: Features, Pricing, And Integration Level

QuickBooks Online (QBO), developed by Intuit, is designed to help businesses simplify repetitive tasks, especially for managing bills, invoices, time, and projects.

Having been around longer than Xero, QBO quickly became popular with accountants and has become the industry standard. QuickBooks is ideal accounting software for small businesses and those needing advanced tax tools and extensive time-tracking capabilities.

Features:

QuickBooks Online offers:

  • Basic reporting
  • Income Stats
  • Expense records
  • Tax organization tools
  • Customer support
  • Payment Acceptance
  • Integration with third-party platforms

Integrations:

QuickBooks integrates with numerous platforms, including CRM systems, time tracking tools, reporting tools, ecommerce platforms like Shopify, email marketing tools, point-of-sale tools, and debtor tracking.

Pricing:

QuickBooks Online offers four plans:

  • Simple Start ($18/month): It includes basic features, transaction imports, tax categorization, and mileage tracking.
  • Essential ($27/month): This favors bill management, time tracking, and three-user access.
  • Plus ($38/month): Includes project profitability tracking, management, and five-user access.
  • Advanced ($76/month): It offers advanced reporting, accelerated invoicing, and premium support.

Conclusion

Choosing between Xero and QuickBooks depends on your business needs. Xero is great for user-friendliness and unlimited user access, while QuickBooks excels in tax tools and time tracking. Assess your specific requirements to determine the best fit for your business.

At Accsoft Solutions (Pvt) Ltd., we provide accounting solutions specifically for small and medium enterprises (SMEs). Since 1998, we have been leading in Sri Lanka and aim to be recognized as top-tier software developers for international companies as well.

Partner with us today for your accounting needs and experience exceptional services for your business.