We like this level of accommodation — it’s rare and highly beneficial among the many tax software free trial offers we’ve encountered while reviewing business software. QuickBooks and Xero are popular accounting software platforms for small businesses. We’ll compare their essential accounting features, pricing, integrations and more to help you choose the right accounting software for your needs. Wave Accounting is a free accounting solution for very small service-based businesses, contractors, freelancers and consultants. If you can’t justify paying for QuickBooks Online or Xero or they have too many features your business doesn’t need, Wave might be an ideal alternative.
- Through QBO, you can prepare and print W-2s for your employees and 1099-MISCs for your contractors.
- Xero supports unlimited users with all its subscription plans, while QuickBooks allows only up to 40 users with its highest-tiered plan.
- Its inventory management reports will show you how well different items are performing and which ones are the most profitable.
- It’s particularly well-suited for businesses who prioritize an all-in-one solution.
Plans & pricing
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.
Customer Support: QuickBooks Online Wins
Xero also has inventory management, but it’s not one of its core functions. QuickBooks is available both online and via desktop and is ideal for businesses that outsource their accounting tasks to a bookkeeper or accountant. This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account. Xero is ideal for businesses that keep a team of bookkeepers or accountants in-house. SummaryThere’s a lot to think about when comparing and choosing accounting software for your business, and not only the monthly cost.
We liked that these reports are interactive, cpa vs accountant: what is the difference devry university which makes it easier for us to measure key performance indicators (KPIs). We also found it easy to apply formulas in Xero to compare our budget and actuals side by side. Entry-level plan limits bills and invoices to five and 20 per month, respectively.
QuickBooks vs. Xero: Software Overview
QuickBooks’ sidebar is vertical and on the left, while Xero’s is horizontal across the top, both deliver about the same user experience, and user satisfaction is high for both. Granted, this doesn’t mean Xero is the most cost-effective option for your business needs. Here’s how each accounting software vendor breaks down their services, so you can see how they compare. QuickBooks supports six custom invoice templates, and lets you track the status of the invoice with read receipts. If needed, you can easily send customers reminders, and can match any payments received with the correct invoice for efficient bookkeeping.
This is the easiest tool we encountered in any accounting software platform for making timely payments in one click. We were delighted that Xero makes it so simple to keep up on your accounts payable and avoid late payment fees. You can cancel anytime, you’ll get 24/7 support during your trial, and your prices don’t change truckers bookkeeping based on whether you pursue the trial.
Assisted Bookkeeping: QuickBooks Online
Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners.