QuickBooks Self-Employed vs Xero 2023 Comparison

Support network refers to a community of software users that can extend professional help to businesses. Having an independent software expert perform the bookkeeping is good for overall ease of use. Lastly, our expert opinion score is our subjective rating based on our experience in trying the software. Both have shortcut links and buttons on their dashboards, biweekly vs semi-monthly payroll but QuickBooks Online is a tad more complex, especially when performing complicated tasks like printing checks. However, for users with no accounting experience, we recommend Xero. You can rely both on Xero and QuickBooks Online for project accounting, but if you want a more detailed option of tracking your profitability, then Xero may be better.

The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see. This section focuses more on first-time setup and software settings.

The 10 best project management software and tools for 2023

These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. Less scalable products are typically simpler, but diminished functionality can cause headaches down the road for growing businesses. We encourage you to research and compare multiple accounting software products before choosing one. With a free plan and paid plans starting at $20 per month, Zoho Books has plans for most budgets.

• QuickBooks is based in the U.S. and is best for U.S. and Canadian companies.
• So unless you are more technically inclined than the typical start-up owner, you will probably want to hire an outside technology person to handle the initial set-up.
• The former offers integrations with over 650 popular software packages, and the latter tops even that with over 800 integrations.
• With the addition of the Advanced plan, QBO is a good choice for larger businesses, as well.
• Xero and QuickBooks are two the of most popular accounting software solutions for small businesses looking to keep track of finances.

QuickBooks products, including QuickBooks Online and QuickBooks Desktop, currently have a 76% market share in the US. QuickBooks was developed by Intuit, a company founded in 1983 that also owns financial software like TurboTax and Mint. Intuit released QuickBooks in 1992 and its cloud-based version, QuickBooks Online, in 2001. For a quick overview of how Xero and QuickBook’s features compare, check out the table below. Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

Quickbooks

Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance. Our evaluation was based on a rubric scoring methodology in six categories, each with a designated appropriate percentage. QuickBooks Online offers integration with hundreds of apps, making it great for small business owners.

So, if you want a low-cost inventory management solution, go with Xero. In terms of the accounting features that most businesses need, Xero and QuickBooks Online are both comprehensive tools that tick most boxes. But their approaches are different, and they each have different pros and cons. For those who like everything in neat compartments, Xero may be your best option. Instead of the “add what you need” process many other accounting software applications employ, Xero requires you to set up your business completely before you can start using the software.

Maximum Users

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. She also regularly writes about travel, food, and books for various lifestyle publications. Yes, Xero has a fixed assets manager that allows you to track fixed assets and calculate depreciation.

Because they cater to companies in different global regions, Xero and QuickBooks specialize in meeting different standards for accounting and financial reporting. Overall, QBO and Xero are very similar, and if you don’t need any specific functionality that one or the other doesn’t have, we suggest you choose based on the location of your business. Chargebee provides integrations with both Xero and QuickBooks, allowing you to automate your SaaS accounting with your preferred accounting solution. Inventory management features help you track and manage the items you have in stock. This makes Xero the favorite for large businesses with more than 25 users and small businesses that need several users on the account. The QuickBooks Online app promises to help you log miles, create invoices, maintain finances and cash flow, and track your profit and loss reports.

Overview of all products

For tax support, Xero integrates with the international tax software Avalara. Xero is a New Zealand-based company that’s usually best for companies based in the U.K., Australia, New Zealand, and the APAC region. While both are very similar, these two products have exclusive benefits that set them apart. In this guide, we will explore the key differences and declare our respective winners in each category. However, with Xero’s Early plan, you can send up to 20 invoices per year.

Starting at $200 per month, QuickBooks Online will bring your business financials up to date and keep your books accurate. Every bookkeeper is a professional who is certified in using QuickBooks. The bookkeepers work across a variety of industries and during a consultation, QuickBooks Online will try to match you with a bookkeeper who knows your industry well. Eliminate manual data entry and create customized dashboards with live data. LiveFlow integrates seamlessly with QuickBooks, but it can also be configured to work with other accounting packages. Neither Xero nor QuickBooks offer support that is perfect and comprehensive, but they both do admirably, so they are about even when it comes to getting helpt getting things done.

Integrations

You can connect invoices, expenses, and transactions to individual projects, pull reports to see the project’s profitability and identify invoices that need to be sent and non-billable time. Those looking for an all-in-one accounting and payroll system may find QuickBooks a suitable choice. However, QuickBooks Payroll’s pricing can be more expensive than Gusto’s (depending on the plan you choose and how many employees you have), and it takes a little more time to set up. Gusto’s basic plan also has more payroll and HR features than QuickBooks’, including health benefits, workers’ compensation administration, commuter benefits and more.

• The software must also have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops.
• For contractors dealing with complex financials, another key difference between Xero and QBO is the availability of industry-specific features.
• Overall, QuickBooks and Xero are relatively equal in terms of transaction and expense tracking unless tagging your transactions is an important feature to you.
• Discounts are available for nonprofits and users that own multiple businesses.
• QuickBooks Payroll is available as an add-on to any QuickBooks plan, or you can purchase it separately.