Xero vs. QuickBooks Online: Finding the Right Accounting Solution for You

The finest accounting software for your organisation should have features and reporting capabilities matched to your needs. Xero and QuickBooks Online (QBO) are two of the most popular cloud-based solutions for businesses of all sizes.

This blog post compares these two popular accounting choices so you can choose one appropriate for you! Find out how Xero and QBO compare in pricing, simplicity of use, automation, tax filing, and more.

Overview

A cloud-based accounting solution is crucial to a business's everyday performance. You can get a crystal-clear perspective of your accounting, maximise tax deductions, and keep track of projects and time monitoring with a platform like Xero or QuickBooks Online. These systems allow you to do all of these things.

Both Xero and QuickBooks Online are complete accounting solutions that meet the requirements of the majority of companies and check the majority of the boxes on the feature list. Their strategies differ and have different pros and cons.

Xero and QuickBooks Online are built for tiny to medium-sized businesses; therefore, bigger organisations with more complex needs may have trouble finding solutions. However, both systems will appeal to most small enterprises, agencies, retail stores, and startups.

Who Is Xero For?

Xero is an outstanding accounting software option for entrepreneurs of small and new businesses, and it is especially suitable for proprietors of companies who literally know nothing whatsoever about accounting but still want to control their finances correctly. Xero is also an awesome choice for company entrepreneurs who understand nothing about accounting but must appropriately control their finances.

The user interface for Xero's accounting software is straightforward and simple, and it provides novice users with accessibility to a demo firm where they may play around with information without the risk of inadvertently entering or erasing vital info.

Who Is QuickBooks Online For?

QuickBooks Online is an excellent choice for companies of any size that are in the process of expanding.

QuickBooks Online allows expanding companies to employ a program that they will likely need to catch up in a relatively short period. QuickBooks was first developed for very small organisations.

About Xero

Xero was founded in New Zealand in 2006 and has evolved to become one of the greatest accounting systems on the market.

"Beautiful business" is Xero's catchphrase, and it captures its most crucial feature: making accounting straightforward and enjoyable. Xero was created to help its clients succeed by delivering better accounting solutions. The software is extremely user-friendly, simple, and efficient.

Xero has a powerful value offer to contend with QuickBooks Online, and that is the fact that its clients adore the software. Despite having fewer reviews overall, Xero regularly receives higher ratings on the median than its competitor, QBO.

With its youthful corporate image and emphasis on clean usage, Xero seems to be more widely used in the world of startups than QuickBooks, which has a more traditional look and feel.

About QuickBooks Online

"Smarter business tools for the world's hardest workers" is the tagline for QuickBooks Online, the industry-leading accounting software developed and distributed by Intuit.

By handling bills and invoicing, monitoring projects, and even monitoring miles autonomously using a smartphone, companies may automate a significant portion of the routine chores and procedures that make up their operations thanks to the cloud-based platform that they offer.

QuickBooks states on its site that 98% of clients think that their software assists them in managing their companies more efficiently, and we can understand why they would say that: there is a reason that QBO has accumulated such a good name.

QuickBooks has been available to customers longer than Xero, possesses a robust feature set, and is favoured by accountants worldwide, particularly in the United States market, which QBO has dominated.

QuickBooks is expected to have 80% of the US market. QBO claims its software saves users $3,534 in taxes annually.

What Sets QuickBooks And QuickBooks Online Apart From One Another?

The standard accounting program offered by Intuit is referred to as QuickBooks, whereas the cloud-based service offered by Intuit is referred to as QuickBooks Online (QBO). With QuickBooks Online (QBO), you pay a monthly membership rather than a one-time cost, and Intuit is responsible for providing all software fixes and upgrades.

Comparatively, Xero has received an average rating of 4.3 from its 1880 customers, while QuickBooks Online has received an average rating of 4.2 from its 3520 users.

Comparing Xero with QuickBooks Online in Terms of Their Features

Both Xero and QuickBooks Online provide a plethora of tools tailored specifically to the needs of proprietors of small businesses.

Although the two systems may use different terminology, they both provide electronic banking, great invoicing, the capability to take payments, and bill management capabilities.

Xero's Offerings

The functionality of Xero is organised into five primary sections: the Dashboard, Business, Accounting, Projects, and Contacts. The accounting dashboard provided by Xero provides a beautiful picture of your company, including bank balances, invoices owing, and total cash coming into and going out of your company. In addition, the dashboard is fully configurable.

You'll discover goods and services, sales orders, invoices, and other business-related documents in the section labelled "Business." The invoices feature in Xero provides a useful overview view of all bills as well as the status of each invoice at the moment.

The invoice entry display in Xero is neat and uncomplicated, providing simple look-up choices for most of its fields. After you have finished creating the invoice, you may deliver it to the client through email, and the email should include choices for paying the bill online. If the payment were made online, Xero would immediately apply the transaction as received; otherwise, you will need to execute the payment as part of your usual bank reconciliation process.

Within Xero's Accounting section, you'll manage all of your money transfers and handle your chart of accounts and financial statements. This section also lets you view and print your company's tax returns. Finally, the Projects area lets you manage projects and measure hours using the time-tracking system.

Contacts let you manage clients, providers, and contractors in one place. Xero also offers a variety of financial statements and management reports.

Xero's iOS and Android apps allow users to do common tasks. These include receipts, contacts, bank account reconciliation, and invoices.

QuickBooks Online's Offerings

QuickBooks Online, much like Xero, provides basic functions such as electronic banking, a solid invoicing potential, bill management, and payment acceptance; however, it separates these characteristics into more particular areas as opposed to grouping them all together under a single umbrella heading.

Your personal choice can have an impact on which format you like. A major navigation page should be self-explanatory to make navigating easier for newbies.

QuickBooks Online makes entering invoices easy and lets you add clients' credit cards and bank accounts. This handy feature enables you to start processing an online transaction for that particular client.

You are also given a choice with QuickBooks Online to apply for client purchases immediately after they have been placed, or you can keep that decision up to the user. The Expense section gives you the ability to enter vendor invoices and get them prepared for payment, and QuickBooks Online gives you the ability to handle clients, vendors, and staff within the system. In addition, Intuit gives you a choice to run payroll for your company.

The Report Center in QuickBooks Online provides a centralised site for processing reports, which includes all regular financial information in addition to a full range of management reports. These reports may be accessed from anywhere in the programme.

Results

There is no clear winner here. Both Xero and QuickBooks Online provide extremely comparable features and capabilities, in addition to summary dashboards that allow users to evaluate the state of their businesses.

Xero vs QuickBooks Online in Terms of How Easy They Are to Use

The degree to which a piece of software is simple to operate is an essential quality, albeit one that is sometimes disregarded.

Because tastes vary and an aspect that I enjoy might be something that you despise more than anything else, this is one of the most compelling arguments in favour of trying out a trial version of any accounting software in which you might be intrigued, if such an option is available.

Xero's Offerings

If you prefer to have everything organised in tidy little sections, Xero might be your ideal choice. Unlike numerous other accounting software packages, which use a process known as "add what you need," Xero requires you to set up your entire company before you can begin using the application. In contrast, other accounting software uses "add what you need."

Xero may not be ideal for you if you want to start and add functionality. The top menu bar of Xero's main screen provides access to the system's various functionalities. New subscribers may now easily browse the program thanks to the streamlined menu.

Help can be accessed from every screen where information is being entered, and there is also a demo firm accessible for users who wish to practise entering operations without having to be concerned about their personal information being corrupted.

Although the Xero mobile app accounting tool is available for both iOS and Android smartphones, it should be noted that the app doesn't offer accessibility to every function available in the full version of the program. For example, you are able to import data into Xero, like a list of customers. Still, in order to ensure that the data is imported accurately, you will first need to obtain the CSV file template from within Xero.

QuickBooks Online's Offerings

Quickbooks Online's installation process is intended to be, in a word, speedy. You can provide as much or as little data as you need and complete the gaps afterwards.

This Xero choice appeals to me for several reasons, including the ability to inspect the capabilities of each part in the vertical menu by hovering over it.

The tool known as "Import Data" is available in QuickBooks Online. It enables users to migrate the accounting for their small businesses from one program to the next to import data into QuickBooks Online.

The accounting dashboard that is featured in QuickBooks Online gives much of the same data that can be found in Xero's dashboard. In addition, the QuickBooks Online accounting dashboard offers immediate links to functions like time monitoring, payroll, and invoicing.

Results

Xero is the most user-friendly. Its data-input windows are simpler and less crowded than QuickBooks Online, and generating invoices and bills requires less information. Nevertheless, regarding dashboard functionality, QuickBooks Online prevails over Xero.

Comparing Xero With QuickBooks Online With Regard To Third-Party App Integration

Integrating a piece of software with several other programs can significantly expand the software's capabilities. Xero and QuickBooks Online both provide a good connection with a wide variety of third-party applications.

Xero's Offerings

Incorporation with more than 700 apps in a wide range of industries is available through Xero. These apps include payment acceptance applications like Stripe, PayPal, GoCardless, CRM, stock, payroll, point of sale, e-commerce, and time monitoring programs.

QuickBooks Online's Offerings

Proprietors of small businesses will find that QuickBooks Online's ability to integrate with many other apps makes it an excellent choice. These interfaces include PayPal, TSheets, Bill Pay for QuickBooks Online, and Stripe. In addition, stock management, payroll management, customer relationship management, and time monitoring applications are also accessible.

Results

The winner of this section is Xero, which offers more than 700 apps compatible with its core program and can link to it.

Accountant Familiarity

These accounting software systems enable individuals to send email invitations to their accountants. It takes only a few minutes to finish the operation. If you live in the US, your accountant may be more familiar with QuickBooks Online than Xero.

Xero is not as widely used in the United States. More than 5 million individuals around the globe use QuickBooks Online, making it a de facto industry norm. When you include people using QuickBooks Desktop, the total jumps to 8 million. The desktop version isn't available in Australia. Although it has more than 3 million subscribers all around the world, Xero isn't yet as widespread as QuickBooks Online despite its popularity.

Customer Support

QuickBooks Online is an excellent choice for proprietors of companies that appreciate troubleshooting issues via telephone conversations. The business provides phone help from 5 a.m. to 6 p.m. Pacific Time (PT) Monday through Friday, and from 7 a.m. to 4 p.m. Pacific Time (PT) on Saturday and Sunday.

Members of the advanced plan have access to customer service around the clock. Xero does not give its clients a phone number, but the company will call them if you supply the appropriate contact information.

Alternative Accounting Software Options

If you're searching for an accounting system, you may feel pressured by the numerous alternatives available. Despite their widespread use, Xero and QuickBooks are just some of the bookkeeping software packages on the market. Additionally, accounting software programs may provide advanced features and an easy-to-use interface.

FreshBooks has grown in popularity in recent years. This program, designed for small enterprises, offers invoicing, time tracking, and expense management.

There is bound to be a piece of accounting software that is an ideal match for your requirements, no matter what.

Conclusion

In conclusion, for Australian businesses deliberating between Xero and QuickBooks Online, the decision ultimately boils down to your specific business requirements and preferences. With its strong presence in the Australian market, Xero offers a user-friendly interface and superior bank feeds, making it highly attractive for small to medium-sized businesses seeking simplicity and efficient cloud-based accounting. Its wide range of integrations with Australian banking and financial services is a significant plus.

On the other hand, QuickBooks Online offers a depth of features and customisation that can be particularly beneficial for businesses requiring detailed reporting and more complex accounting functions. Its ability to handle multiple currencies and its suitability for various business sizes make it a versatile choice, especially for businesses with an international presence or those planning to expand.

Both platforms offer robust, cloud-based solutions tailored to the needs of modern businesses, but the right choice depends on the specific demands of your business operations. Whether it's Xero's streamlined approach and strong local integration or QuickBooks Online's comprehensive features and customisation options, it's essential to consider your business's current and future accounting needs.

Australian businesses would do well to explore the free trials or demonstrations offered by both platforms, ensuring a practical understanding of each system before making a decision. The right accounting software is more than just a tool; it's a long-term partner in your business's financial management and growth.

Content Summary

• The finest accounting software for your organisation should have features and reporting capabilities matched to your needs.
• Xero and QuickBooks Online (QBO) are two of the most popular cloud-based solutions for businesses of all sizes.
• This blog post compares these two popular accounting choices so you can choose one appropriate for you!
• Find out how Xero and QBO compare in pricing, simplicity of use, automation, tax filing, and more.
• A cloud-based accounting solution is crucial to a business's everyday performance.
• Both Xero and QuickBooks Online are complete accounting solutions that meet the requirements of the majority of companies and check the majority of the boxes on the feature list.
• Xero was created to help its clients succeed by delivering better accounting solutions.
• The software is extremely user-friendly, simple, and efficient.
• Xero has a powerful value offer to contend with QuickBooks Online, and that is the fact that its clients adore the software.
• Despite having fewer reviews overall, Xero regularly receives higher ratings on the median than its competitor, QBO.
• With its youthful corporate image and emphasis on clean usage, Xero seems to be more widely used in the world of startups than QuickBooks, which has a more traditional look and feel.
• "Smarter business tools for the world's hardest workers" is the tagline for QuickBooks Online, the industry-leading accounting software developed and distributed by Intuit.
• QuickBooks has been available to customers longer than Xero, possesses a robust feature set, and is favoured by accountants worldwide, particularly in the United States market, which QBO has dominated.
• QBO claims its software saves users $3,534 in taxes annually.
• Comparatively, Xero has received an average rating of 4.3 from its 1880 customers, while QuickBooks Online has received an average rating of 4.2 from its 3520 users.
• The functionality of Xero is organised into five primary sections: the Dashboard, Business, Accounting, Projects, and Contacts.
• These include receipts, contacts, bank account reconciliation, and invoices.
• QuickBooks Online, much like Xero, provides basic functions such as electronic banking, a solid invoicing potential, bill management, and payment acceptance; however, it separates these characteristics into more particular areas as opposed to grouping them all together under a single umbrella heading.
• QuickBooks Online makes entering invoices easy and lets you add clients' credit cards and bank accounts.
• In addition, Intuit gives you a choice to run payroll for your company.
• These reports may be accessed from anywhere in the program.
• Both Xero and QuickBooks Online provide extremely comparable features and capabilities, in addition to summary dashboards that allow users to evaluate the state of their businesses.
• The degree to which a piece of software is simple to operate is an essential quality, albeit one that is sometimes disregarded.
• Because tastes vary and an aspect that I enjoy might be something that you despise more than anything else, this is one of the most compelling arguments in favour of trying out a trial version of any accounting software in which you might be intrigued, if such an option is available.
• Unlike numerous other accounting software packages, which use a process known as "add what you need," Xero requires you to set up your entire company before you can begin using the application.
• In contrast, other accounting software uses "add what you need.
• The top menu bar of Xero's main screen provides access to the system's various functionalities.
• Although the Xero mobile app accounting tool is available for both iOS and Android smartphones, it should be noted that the app doesn't offer accessibility to every function available in the full version of the program.
• For example, you are able to import data into Xero, like a list of customers.
• The tool known as "Import Data" is available in QuickBooks Online.
• It enables users to migrate the accounting for their small businesses from one program to the next to import data into QuickBooks Online.
• The accounting dashboard that is featured in QuickBooks Online gives much of the same data that can be found in Xero's dashboard.
• In addition, the QuickBooks Online accounting dashboard offers immediate links to functions like time monitoring, payroll, and invoicing.
• Integrating software with several other programs can significantly expand the software's capabilities.
• Xero and QuickBooks Online both provide a good connection with a wide variety of third-party applications.
• Proprietors of small businesses will find that QuickBooks Online's ability to integrate with many other apps makes it an excellent choice.
• These accounting software systems enable individuals to send email invitations to their accountants.
• If you live in the US, your accountant may be more familiar with QuickBooks Online than Xero.
• Although it has more than 3 million subscribers all around the world, Xero isn't yet as widespread as QuickBooks Online despite its popularity.
• QuickBooks Online is an excellent choice for proprietors of companies that appreciate troubleshooting issues via telephone conversations.
• Members of the advanced plan have access to customer service around the clock.
• If you're searching for an accounting system, you may feel pressured by the numerous alternatives available.
• Despite their widespread use, Xero and QuickBooks are just some of the bookkeeping software packages on the market.
• Additionally, accounting software programs may provide advanced features and an easy-to-use interface.
• There is bound to be a piece of accounting software that is an ideal match for your requirements, no matter what.
• In conclusion, for Australian businesses deliberating between Xero and QuickBooks Online, the decision ultimately boils down to your specific business requirements and preferences.
• Both platforms offer robust, cloud-based solutions tailored to the needs of modern businesses, but the right choice depends on the specific demands of your business operations.
• Whether it's Xero's streamlined approach and strong local integration or QuickBooks Online's comprehensive features and customisation options, it's essential to consider your business's current and future accounting needs.
• Australian businesses would do well to explore the free trials or demonstrations offered by both platforms, ensuring a practical understanding of each system before making a decision.
• The right accounting software is more than just a tool; it's a long-term partner in your business's financial management and growth.