QuickBooks Online vs. Xero

Xero and QuickBooks are two of the most popular accounting software solutions for small businesses looking to keep track of finances. While the two offer similar features, such as tax management, financial reports, integrated payroll, inventory, and file storage, the two are not without their differences. As experts in the field, we at ALL-PRO Business & Bookkeeping Corp. have compared Xero vs. QuickBooks when it comes to the key features, pricing, customer service, and reviews to help you decide which is right for your business.

A. QuickBooks Online (QBO)

Businesses that plan to grow and want strong reporting capabilities should benefit from QBO. Advanced, customized reporting capabilities in higher-tier plans could be a big asset to experienced business owners interested in running more complicated reports down the road. Business owners who prefer working through a hiccup on the phone will favor QBO. 

The company offers phone or online chat support Monday through Friday from 6 a.m. to 6 p.m. PT and Saturday from 6 a.m. to 3 p.m. PT. Business owners that opt for the advanced plan get 24/7 customer support. The company says it has no published phone number but will call you if you provide your contact info.

QBO is an industry-standard platform with 5.3 million users worldwide. If you count QuickBooks Desktop users, that number rises to 8 million. With more than 3 million users worldwide, Xero is popular but not as ubiquitous as QBO. The numbers alone suggest there’s a better chance your accountant has worked with QBO.

QBO’s most popular Plus plan tops out at five users. Its highest-tier Advanced plan allows up to 25 users. All things considered, however, user limits shouldn’t be a huge deal unless you have a larger business. QBO can be much more expensive at $25 to $180 per month, as opposed to Xero at $11 to $62 per month. The limitations of QBO can be potentially more costly over time. You don’t have to pay for upgraded versions or buy multiple licenses with QBO, but it can cost more than Xero. 

B. Xero 

If your business places top emphasis on inventory management, the number of users, and fixed asset management, Xero could be the smarter choice. This is especially true for larger businesses that use reporting integrations and don’t have to rely on their accounting software for that. While Xero includes fixed asset management in all plans, QuickBooks Online requires users to manually set up an asset account. Though both companies suggest users work with an accountant to manage the depreciation of assets, Xero does a better job of cutting out the work for you. Xero primarily offers online support, which is available 24/7. 

If you need to give accounting access to more than five people, Xero could be your better option. There is no payroll module within the program. One would have to pay for a third-party app that integrates with Xero. This is a big disadvantage in our opinion. The requisition/purchase/inventory side is very, very basic. Limited expense claims, projects, and multi-currency support to the most expensive plan. However, the downside is that there is no built-in ‘Debtor Chasing’ function, so businesses will need to manually follow up on unpaid invoices. It doesn’t support Exchange Trade Products (ETPs). Additionally, the Xero Online Accounting Software may support recurring invoices, but it lacks automatic recurring payments. If you know, You can manually set up recurring payments within Stripe or some other payment gateway. One of the common Xero limitations is that even if you do set the payments to recurring, it will not mark your invoices paid until you reconcile the transactions.

Takeaway 

Xero and QuickBooks are both great accounting software options for small businesses. They both offer a wide range of features, an easy-to-use interface, and competitive pricing. QBO is really the more robust of the two accounting platforms, but it’s also the most costly. This means that it’s particularly suited to businesses that want to gain deeper insight into the logistics of their business as it grows. The QBO plans scale up reporting capabilities at each level and match business needs at each growth stage, making it great for businesses that plan to scale.

Because of its interface, which is clean and easy to use, Xero has attracted a young market, particularly in the startup world. If you want a solution that has an extremely low learning curve, Xero is a great option. Xero’s unlimited user offering is also a huge selling point for the platform. This feature makes it a strong solution for large and small businesses alike.

If you’re self-employed and don’t need to send more than twenty invoices a year, $9 per month is a great value. Similarly, if you’re a big business requiring twenty-five users or more, you will save significantly with Xero. 

They are both great programs. However, if you plan to run payroll within the program, QBO will be your better choice. If your business needs many users to access your accounting data and requires low-cost inventory and fixed asset accounting, Xero is the better choice. QuickBooks Online wins if you need a comprehensive bank reconciliation, class and location tracking, good customer support, and easy access to local bookkeepers.

If you are looking for a bookkeeper in Calgary, reach out to us at ALL-PRO Business & Bookkeeping Corp.. We have over twenty-five years of experience in bookkeeping, servicing entrepreneurs, and small to medium-sized business owners in many different fields. We customize our services to suit your needs, whether your business requires weekly, semi-monthly, monthly, quarterly, or an annual bookkeeping service. Our goal is to ensure your needs are met!

We offer services like all accounting functions to year-end, remittances for payroll and GST, job costing/class coding, and payroll services. Our services are extended to clients across British Columbia, Golden, Revelstoke, Kamloops, Salmon Arm, Kelowna, Penticton, Fernie, Cranbrook, Nelson, Alberta, Airdrie, Chestermere, Crossfield, Carstairs, Innisfail, Red Deer, Medicine Hat, Calgary, Strathmore, Black Diamond, Cochrane, High River, Okotoks, Turner Valley, Lethbridge, Edmonton, Grande Prairie, Brooks, Saskatchewan, Swift Current, Moose Jaw, Regina, Saskatoon, Manitoba, Brandon, and Winnipeg.

Get in touch with us today!

To learn more about the services we offer, please click here. To get in touch with us, please click here or call us toll-free at Head Office: (403) 630-0012.