Payments are due by the end of your monthly billing period based on the date you purchased your subscription. Given that there are several invoicing software on the market, it’s worth putting in some time to research your options before choosing one for your business. All three plans come with an optional add-on for payroll with Gusto for accounting rate of return $40 per month plus $6 per month per person. Xero best suits medium to large businesses but works for all businesses.

QuickBooks offers a more integrated suite of features compared to Xero. With incremental cash flow: definition formula and examples features like automatic expense tracking, a user-friendly interface, and extensive reporting options, QuickBooks aims to streamline financial management for small businesses. It’s particularly well-suited for businesses who prioritize an all-in-one solution. Xero includes extensive features that make it suitable to handle complex accounting processes for small- and medium-sized businesses as well as larger ones.

QuickBooks has a wide network of banking partners, making it easy to securely import your bank feeds from a variety of banks and credit card companies. This seamless integration saves time, ensures accuracy, and eliminates manual errors. QuickBooks’ user-friendly interface makes navigating your finances a breeze, even if you’re not an accounting expert. The layout and simple design ensure that you can find what you need quickly and efficiently. Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop. The Enterprise Desktop plan offered by QuickBooks starts at $1,922 per year.

Accountant familiarity

1. The base fee for both plans is half off for the first three months.
2. However, if you work with multiple vendors and customers and need more enhanced features, you should consider QuickBooks Online’s Plus tier.
3. There are a handful of differences between the features of QuickBooks Online and Xero.
4. 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.

QuickBooks Online outclasses Xero in this category as it offers more useful features that aid in setting up the software. 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. QuickBooks Online leads in many categories, but Xero has some slight advantages in terms of fixed asset management, project accounting, and taxes. We tackle these differences between Xero and QuickBooks in detail in the following sections. All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track your income and expenses.

Features: QuickBooks Online Wins

The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments. QuickBooks Online’s customer support is better than Xero’s since you can interact with an agent through a phone call. You can’t initiate a call, but you can submit how to account for capital improvements a ticket and wait for an agent to call you. Another option for QuickBooks Online users is finding an independent QuickBooks ProAdvisor for assisted bookkeeping.

How much does QuickBooks Online cost?

Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions.

Inventory Management: Tie

Read our 2024 Xero review to find out if it’s the right solution for your business. This easy-to-use and feature-rich software is ideal if you have no bookkeeping experience and want top-notch customer support. Regardless of what route you choose, make sure to do your research and get hands-on with free trials to find the accounting software that’s right for your business. And if you find that neither company meets your needs, you may be better off with one of our top accounting software picks for small businesses. One of the more recent additions of QuickBooks Online is a mileage tracking feature. Discounts are available for nonprofits and users that own multiple businesses.