On May 13, 2022
It’s difficult to maintain track of your business finances without the aid of a professional accounting application in today’s modern world. Online accounting software can save you time and money, but which one should you use? We’ll compare QuickBooks Online and Xero in this article to show you how they work. This will assist you in determining which platform is appropriate for your requirements and specifications.
In your hunt for cloud-based accounting software, you’ll come across two names over and over: QuickBooks Online and Xero. These two small business accounting software alternatives are frequently featured on the top lists across the internet, and for valid reason.
With QuickBooks Online, businesses are able to automate a variety of time-consuming operations, such as billing, invoicing and inventory management. Strong reporting capabilities make the program a good alternative for firms that are expanding. The program is well-developed and well-liked by accountants, particularly in the United States, and it has been on the market for longer than Xero.
There are four different pricing tiers available for QuickBooks Online:
- Simple start – the cost is $25/month including 1 user and 2 accounting firms
- Essentials – the cost is $50/month including 3 users and 2 accounting firms
- Plus – the cost is $80/month including 5 users and 2 accounting firms and
- Advanced – the cost is $180/month including 25 users and 3 accounting firms
In terms of cloud-based accounting software, Xero is also one of the best. You can track your business’ money and keep the books in order thanks to the hundreds of integrations, mobile apps for both Android and iPhone, and accounting tools. In general, Xero is better suited to enterprises with more than five employees and self-employed individuals who do not have to send out more than 20 invoices annually.
The following are the details of their plans:
- Early – for only $12/month
- Growing – the cost is $34/month and
- Established – for $65/month
In order to maximize your accounting piece of software, you’ll need to devote some of your time to mastering the fundamentals of accounting. However, the information on the dashboards of QuickBooks Online and Xero can be confusing without an understanding of the language and why it matters.
Key differences between QuickBooks Online and Xero
Having established the idea of the two systems, it’s time to analyze the essential features that distinguish them. In the end, the goal of using accounting software is to make your accounting chores and projects more efficient and less time consuming.
Number of users
Are you looking for accounting software that can handle a big number of concurrent users? This feature is available in both QuickBooks Online and Xero, but there is one major difference – QBO supports up to 25 users if you commit to their Advanced plan, while Xero supports an infinite number of users no matter which plan you have enrolled for.
Ease of use
In this case, it’s evident that QuickBooks Online is the superior option. Even accounting rookies won’t struggle with it because of its well-designed and consumer-friendly user interface. Xero, on the other hand, is a little more difficult to learn and set up, but there are a lot of internet tools to help you get started.
These platforms have their own mobile apps, which could come in handy if you need a report quickly and are on the go. Because QBO has only a handful of complaints, it has a distinct advantage over other apps in this area. As opposed, there have been a number of complaints from Xero users concerning app issues, glitches, and failures.
The safety of company data should always be a top priority for business owners and managers. Data is protected in QBO and Xero’s data centers using encryption, redundancy, and physical safety precautions. Xero, on the other hand, promises an unbelievable 99.97% uptime and one of the finest cloud accounting security reputations. In addition, users of QuickBooks Online have reported delays and outages on multiple occasions.
Built-it lending tool
If your company requires financial assistance, you may be able to obtain funding through your accounting software. A built-in financing instrument called QuickBooks Capital is included in QuickBooks Online. In order to assess if your business is eligible for a loan from a bank, QuickBooks Capital examines your financial data recorded in QBO. Xero does not have a built-in lending feature that is parallel.
When it comes to the day-to-day operations of a business, a cloud accounting application can make all the difference. Accounting software like Xero or QuickBooks Online gives you a clear picture of your finances, allows you to take full advantage of tax deductions, and even allows you to keep track of projects and employee time spent on them. The decision is up to you!