You can simply download the free Xero Projects app on iOS and Android, using it to record time and costs, as well as seamlessly and automatically feed the data into invoices and reports. QuickBooks and Xero both offer a lot of features, including all the core abilities that make these two options the best small business accounting software around. However, QuickBooks offers a more seamless experience for two big reasons. First, QuickBooks has phone support while Xero does not, so QuickBooks users can solve their problems that much faster. Second, QuickBooks offers some features that Xero doesn’t have, like document scanning.

What QuickBooks offers

Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process. QuickBooks also offers Payroll, but this service is an additional fee starting at $45 to $125 per month. Moving up to the more expensive plans will get you features such as inventory, custom user permissions, and accelerated invoicing, with all plans providing the basic functionality your business needs. While the vocabulary may vary between the two products, they both offer electronic banking, excellent invoicing, payment acceptance, and bill management capabilities. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users.

Security Features

That said, both QuickBooks and Xero often offer a special entry deal for your first few months, although these deals can vary. At different seasons of the year, QuickBooks plans have been between 50% and 70% off for the first three months. Whatever the current deal, users will need to skip their free trial to qualify.

Here’s a full breakdown of the main features of Xero and QuickBooks Online. Xero utilizes an App Marketplace with over 1,000 apps to extend its core functionality. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.

1. QuickBooks Online is the winner in this category because of its many features that Xero lacks.
2. QuickBooks Online also has advanced accounting features you won’t find with some of its competitors.
3. While neither provider allows you to file a sales tax return, Xero’s features allow for more accessibility when it comes to sales taxes.

Fit Small Business Case Study

The QuickBooks the historical cost principle and business accounting Online base plan starts at $35 per month, and the plan with the most features is $235 per month. Intuit offers prospective users a free 30-day trial and generous discounts on their monthly subscriptions. Go to their website for a full breakdown of Quickbooks pricing and deals.

QuickBooks Online does offer phone support for its customers but doesn’t have email support. Phone wait times are often short, but the helpfulness and knowledge of representatives vary, so resolving your issue may take some time. QuickBooks Online has a number of other support resources, including a help center, in-software help, training, and premium vs discount bonds guides, to help you get the answers you need. Unfortunately, the lowest-priced Xero plan is quite limited, allowing users to enter only five bills and send 20 invoices per month. While this may be suitable for independent contractors or self-employed individuals, most users will need to upgrade to one of the more expensive plans.

The QuickBooks Simple Start plan costs $30 per month and supports one user, making it best for very tiny businesses or for a single freelancer. Features include expense tracking, contact management, and unlimited invoices and estimates. Reporting abilities are limited, though a raft of third-party integrations are available (many cost a little extra, but some are free).

While Xero might be a good application to start with, growing businesses will appreciate the scalability offered by QuickBooks Online. Pricing levels for Xero and QuickBooks Online are very similar, with both applications offering three pricing plans. For example, both mid-level plans are similar in price and scope, with the Growing plan in Xero costing you $32, while QuickBooks Online’s Plus plan is $35. The Report Center in QuickBooks Online offers a central location to process reports, which include all standard financial statements as well as a healthy selection of management reports.

Xero uses a very structured setup process, which is great for those who like to have everything in place prior to starting work. While this, again, can come how to convert an annual interest rate to a monthly rate down to user preference, I like the ability to just jump in and get started. A 50% discount will be applied to the above prices for the first two months.