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. Another reason QuickBooks Online stands out is its ability to calculate sales tax rates automatically based on the customer address, which is something Xero can’t do.

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Go to their website for a full breakdown of Quickbooks pricing and deals. QuickBooks Online is full-featured accounting software that is easy to use, even if you’re new to accounting. In addition to the standard accounting features you’d expect, QuickBooks Online also has advanced features, exceptional invoicing automatizations and customizations, and built-in lending. It also has mobile apps that, according to above the line below the line financial concept users, outperform other popular accounting software apps. Xero and QuickBooks are both great accounting software options for small businesses.

We’re backing small business

Prices for QuickBooks Live Bookkeeping scale with the monthly expenses of your business, which means higher costs for businesses with higher expenses. We break down the prices in our QuickBooks Live review’s pricing section. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants.

1. On the other hand, FreshBooks may be a better fit for freelancers and solopreneurs, as the capabilities are easier to navigate.
2. 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.
3. This means it can be accessed from any internet-connected device.
4. Here’s a full breakdown of the main features of Xero and QuickBooks Online.
5. However, keep in mind that the entry-level Early plan only supports 20 invoices and five bills per month, so if you regularly exceed that, then you’ll need to upgrade.

Payroll

You can’t initiate a call, but you can submit a ticket and wait for an agent to call you. Note that fixed asset accounting isn’t part of our case study, so there are no scores. Includes audit trails and easy accountant access; has millions of users so your accountant will likely be familiar with it.

They both offer a wide range of features, an easy-to-use interface and competitive pricing. 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. However, keep in mind that the entry-level Early plan only supports 20 invoices and five bills per month, so if you regularly exceed that, then you’ll need to upgrade. All of the QuickBooks plans allow you to create unlimited invoices and quotes and customize them to reflect your company branding. QuickBooks also allows you to accept payments from debit or credit cards, as well as ACH payments, Apple Pay, PayPal and Venmo.

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. While both are very similar, these two products have exclusive benefits that set them apart. This guide will explore the key differences and declare our respective winners in each category.

Xero utilizes an App Marketplace with over 1,000 apps to extend its core functionality. Create professional custom invoices with your logo that you can send from any device. Get the most out of Xero with access to our team of onboarding specialists during your first 90 days. If you’re looking for an accountant who specializes in Xero, you can search for an accounting advisor through their website by location and industry. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.