Xero vs QuickBooks Online: Features Comparison, Pros, Cons

While Bookkeeper360 provides bookkeeping services for Xero users, it is also compatible with QuickBooks Online. Xero has a slight edge in this category due to its ability to create a sales tax return and pay sales tax liability with either a check or electronically. While neither provider allows you to file a sales tax return, Xero’s features allow for more accessibility when it comes to sales taxes. However, we want to emphasize that Xero offers fixed asset accounting in all its plans, making it an affordable QuickBooks alternative for fixed asset management. Read our QuickBooks Bill Pay review for more details on the solution. We declared this category a tie because Xero and QuickBooks Online aced it.

Best Accounting and Bookkeeping Apps for Small Businesses

We researched both tools extensively to help you choose the right accounting software for your business. In this article, we compare their core features, pricing and pros and cons to help you decide which one is the right accounting software for your company. FreshBooks can be a good option for freelancers and contractors looking for an affordable, simple accounting software. There’s time tracking in all plans and phone support is available from 8 a.m. The first two plan tiers put a limit on billable clients, but not on invoices. This takes into account customer management, revenue recognition, invoice management, and collections.

Mobile App Functionality: QuickBooks Online Wins

While Xero is easier to set up, QuickBooks has a more intuitive and customizable calculate the value of your paper savings bonds dashboard and has time-saving features. For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero. QuickBooks Online outclasses Xero in this category as it offers more useful features that aid in setting up the software.

Small Business Bundle

We also like that QuickBooks is transparent about what is an example of cost unit features and pricing online. Unlike some other vendors, QuickBooks leaves no questions about what you get for your dollar. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it. More than 750 app integrations, including live, in-house bookkeeping. Our partners cannot pay us to guarantee favorable reviews of their products or services.

1. Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge.
2. Xero and QuickBooks are both great accounting software options for small businesses.
3. All plans currently have a 95% off promotion for the first three months.
4. FreshBooks is one such option that has gained popularity in recent years.

Project and time tracking

We also like that Xero has an optional Gusto payroll integration for each platform at no extra cost. QuickBooks and Xero are among the best accounting software platforms for small businesses. If you can’t justify the $99-per-month QuickBooks Online Plus plan, you won’t get inventory management, because QuickBooks Online’s lower-tier plans don’t come with it. This could be a real shortcoming for small online retail businesses, for instance, that need to keep track of their products and the materials used to make them. All of Xero’s plans come with inventory management so business owners can track what’s in stock and which products are selling. If you need to give accounting access to more than five people, Xero could be the better option for you.

QuickBooks also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. Check out our comparison pages below for accounting software alternatives to QuickBooks and Xero. Access Xero features for 30 days, then decide which plan best suits your business. We also have dedicated articles and solutions online from our Customer Experience team to support your transition. Try Xero, and you’ll see why millions of small businesses choose our QuickBooks alternative.

Our editorial team independently evaluates products based on thousands of hours of research. Learn more about our full process and see who our partners are here. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. Just keep in mind that unlike the gross vs. net income inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low.