You also can plan your quarterly taxes and share or export relevant tax information for your accountant. QuickBooks Online is the winner in this category because of its many features that Xero lacks. This includes the ability to accept payments, view reports, and assign expenses to customers or projects.

Spend less time in the books

Users must have easy access to customer service channels in case of problems, questions, or assistance. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability. Both do a great job of accounting for inventory and calculating the cost of your inventory sold automatically. However, inventory accounting is included in all Xero plans, while it’s only in the Plus and Advanced versions of QuickBooks Online. So, if you want a low-cost inventory management solution, go with Xero. Includes project tracking tools in most expensive plan; limited transaction tracking tags; lacks industry-specific reports; users with multiple businesses must pay for separate subscriptions.

How many users can access Xero?

1. Although there’s no doubt that QuickBooks offers substantial integration opportunities, including with some of their own branded tools, it’s hard to compare to Xero’s over 700 options.
2. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
3. Whether you’re using Xero or QuickBooks Online, the bank feeds section will be the critical area where most of your business bookkeeping will occur.
4. Both Xero and QuickBooks Online are web-based platforms, meaning you can log in and access your account wherever you have internet.
5. In short, the direct method means you subtract the money you spend from the money you receive.

QuickBooks Online is the clear winner because of its wide range of services available for users of the software. Not only does it offer QuickBooks Live, but most online services also work with QuickBooks Online, such as Bench, Brainy Advisors, and Merritt Bookkeeping. While Bookkeeper360 provides bookkeeping services for Xero users, it is also compatible with QuickBooks Online. 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. We have an extensive history of reviewing small business accounting software, and we state tax and expenditure limits stay up-to-date with the latest features and enhancements.

The main differences between Xero vs QuickBooks lie in features and pricing. Xero is more affordable than QuickBooks Online, always includes unlimited users, and offers inventory management and fixed asset accounting in all its plans. QuickBooks has earned the trust of millions of small businesses due to its robust features and user-friendly design. The platform offers a comprehensive range of accounting tools, from invoicing and expense tracking to payroll and inventory management. Its intuitive interface and extensive customer support make it accessible to business owners with varying levels of accounting knowledge. QuickBooks Online and Xero are well-known cloud-based business accounting software solutions that are a favorite of growing companies due to their affordable pricing and scalability.

However, both mobile apps let you send invoices, capture receipts, enter bill payments, and categorize expenses in the bank feed. At Fundera, Randa specializes in reviewing small business products, software, and services. Despite not offering unlimited invoices and bills in its base plan, Xero accounting software is a more scalable solution than QuickBooks in terms of the number of users it supports. Xero supports unlimited users with all its subscription plans, while QuickBooks allows only up to 40 users with its highest-tiered plan. Xero also allows you to create quotes, send invoices and enter bills, and you can accept online payments by credit card, debit card, direct debit, Apple Pay, Google Pay, Stripe and GoCardless. You can also sync your bank accounts for automatic tracking and reconciliation.

Mobile App Functionality: QuickBooks Online Wins

ECommerce businesses can easily connect their accounting software with payment platforms like PayPal and Shopify. If you upgrade to at least the Essentials plan from QuickBooks, you can enter employee time by client or project and automatically add that time to invoices. For more robust scheduling and PTO management, you’ll need to purchase the separate QuickBooks Time product in addition to the accounting software. QuickBooks can also track your mileage reliably and automatically using a GPS-enabled smartphone app.

Banking: QuickBooks Online Wins

Although Xero offers three different plans, the first plan extremely limits the number of invoices, bills, and quotes you can utilize. Plus, if your business needs functionality beyond these limitations, you have to opt for the Growing plan, which is more than 3x as expensive as the Early plan. With the Xero Expenses feature set, you can track, assign, and manage your business’s expense claims.