QuickBooks Online vs Xero 2024 Comparison

Meanwhile, a vertical sidebar can take you to more in-depth dashboards dedicated to topics including Workers, Taxes, and Reports. QuickBooks also offers a number of tailored reports, including QuickBooks reports for nonprofits, which let organizations track their donations and finances with one tool. Still, if your business relies heavily on other software services, Xero is a better bet then QuickBooks for making them all work together and ensuring everything is easily accessible.

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 depository definition National Association of Women Business Owners. She also regularly writes about business for various consumer publications. Evaluate functions and features for different kinds of businesses.

Payroll

These systems provide accounting features such as invoicing, accounts payable and receivable, and inventory management to help your business stay organized and profitable. QuickBooks was created in 1983 by Intuit, garnering nearly 40 years of development behind it. A New Zealand-based company launched Xero in 2006 to challenge the growing accounting software market. Intuit also offers QuickBooks Desktop versions for companies that require it, but we will compare the Online version in this guide. QuickBooks has earned the trust of millions of how hard is the cpa exam and why are pass rates only 50% small businesses due to its robust features and user-friendly design.

Xero vs QuickBooks: Top Features Comparison

1. For example, if it’s the first time you’ve paid for a product or service.
2. Fixed asset accounting is part of all Xero’s plans, whereas it’s offered only in the most expensive plan of QuickBooks Online, Advanced.
3. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.

Core offers the basics, while Premium adds same-day direct deposit, role-based access, and auto time tracking. Elite also adds tax penalty protection, and a dedicated pro to help set up and troubleshoot. Overall, the cheaper cost of Xero’s time tracking abilities is likely to make it the more appealing option, even if QuickBooks includes more features. Some businesses may rely on those features, however, particularly if they opt for top-down oversight that requires greater control. However, QuickBooks offers a more seamless experience for two big reasons.

Xero vs QuickBooks Online: Deep Dive Feature Comparision

Premium includes scheduling for jobs and shifts, real-time reporting, custom alerts, and time-off management. The base fee for both plans is half off for the first three months. 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 rent receipt template and PTO management, you’ll need to purchase the separate QuickBooks Time product in addition to the accounting software.

Advanced

You can add your logo to your invoice templates, and change the color to fit your business’s branding. And while the Advanced tier of QuickBooks offers 24/7 support through live chat, phone lines, and email, their other tiers only offer a live chat option. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy.

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. Harsh is a data enthusiast with over 2.5 years of experience in research analysis and software development.