Xero vs QuickBooks
23rd February 2022 at 10:10 am #242193petergroftParticipant
A cloud accounting tool is one of the most powerful contributors to the day-to-day running of a company. With a system like Xero or QuickBooks, you can enjoy a crystal-clear view of your accounting, maximize tax deductions, and even stay on top of projects and time tracking.
In terms of the accounting features that most businesses need, Xero and QuickBooks are both comprehensive tools that tick most boxes. But their approaches are different, and they each have different pros and cons.
Both Xero and QuickBooks` are optimized for small to mid-sized businesses, so large enterprises with more complex requirements may struggle to tick all of their boxes. But for most small businesses, agencies, retail stores, and startups, there’s a lot to love about both systems.
Feature comparison of Xero vs. QuickBooks
Ease of setup and use
QuickBooks and Xero both have excellent dashboards that give you an easy glimpse of all of your main business metrics after logging in. Your best option here will probably come down to the user interface you enjoy using most.
We love QuickBook’s simple yet customizable layout, offering a quick overview of profit and loss, expenses, bank account balances, invoices, and sales.
Similarly, Xero has an equally user-friendly dashboard that’s aligned with the minimalist vibe of the rest of their product
With either tool, you’ll get reliable features for processing invoices and quotes. Xero makes it easy to create invoices and preview before sending, although the system can occasionally be glitchy, at least in our testing.
QuickBooks makes it easier to update details about the client directly in the invoice, rather than having to navigate to their contact record
Expenses and bills
Both Xero and QuickBooks have excellent mobile apps, making it easy to scan receipts on the go to avoid paper piling up.
Xero makes it simple to categorize money in and out with its chart of accounts. It can take a bit of time to get your head around – and you might want to ask your accountant for advice on which accounts to choose for different use cases – but once you’re familiar with it, you should be good to go.
With Xero Expenses, an add-on that’s included in the Established plan if you’re in the US, you and other employees can submit expenses, reconcile transactions and manage everything without paper receipts.
QuickBooks also keeps managing expenses and bills simple. The chart of accounts is easy to manage, customize, and track spending for each category.
With Quickbooks, expenses functionality is built into all plans rather than offered as an add-on (or gated behind higher plans) as with Xero. This can mean some small cost savings and extra simplicity if you have a small business.
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