Robust feature set includes thorough record-keeping, comprehensive reporting, excellent invoicing and inventory management, plus a capable mobile app. Xero and QuickBooks Online are both powerful accounting software solutions for small businesses. However, when you compare features, QuickBooks Online inches ahead for its stronger feature set, ease of sharing with accountants and customer support. Core offers the basics, while Premium adds same-day direct deposit, role-based access, and auto time tracking.

Neither QuickBooks or Xero offers a permanent free plan, but if that’s what you need, we have a guide to the best free accounting software. Both QuickBooks and Xero offer tax preparation features, and that feature is just one reason why our researchers gave both services a perfect 5/5 for financial reporting. Xero offers inventory tools across all its plans, marking a step up from QuickBooks, which offers inventory tracking with its Plus and Advanced plans, but not with Simple Start, QuickBooks’ entry level plan. Our research suggests that QuickBooks is better all-around than Xero, with a more advanced feature package, stronger support tools, and standout scanning capabilities. Xero and QuickBooks Online are robust accounting software programs, and—in our case study—both prove why they’re the leading tools in the industry. They may have almost the same features, but each has its own strengths and drawbacks.

What QuickBooks offers

QuickBooks offers a mobile app for both iOS and Android devices, allowing you to manage your finances and your business on the go. You can create and send invoices, track expenses, reconcile bank accounts, and more, all from your smartphone or tablet. This versatile accounting software is designed to help businesses manage their finances effortlessly.

Inventory Tracking

1. With both programs, advanced features like time tracking and inventory management are available on select plans.
2. Plus, read receipts let you know when customers have seen an invoice and if it’s been paid.
3. With a free plan and paid plans starting at $20 per month, Zoho Books has plans for most budgets.
4. QuickBooks Online has over 750 integrations encompassing everything from customer management and payment processing to tax preparation and lending.

Create professional custom invoices with your logo that you can send from any device. Sage may be the most suitable choice for companies with complex accounting requirements, such as multinational operations or specific regulatory compliance needs. In U.S. dollars, Xero had $877.6 million in SaaS annual recurring monthly revenue (AMRR), according to its investor presentation for the six months ended boeing suppliers September 30, 2020. Xero is experiencing 15% AMRR year-over-year growth in constant currency.

Mobile App Functionality: QuickBooks Online Wins

They’ll help you reconcile your what is a fixed asset in accounting with examples bank and credit card statements and prepare monthly reports. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances.

In evaluating pricing, we considered the billing cycle (monthly or annual) and the number of users. Note that fixed asset accounting isn’t part of our case study, so there are no scores. Run payroll on any device with taxes, compliance & reporting built-in. If you don’t want to handle your books yourself, you can sign up for QuickBooks Live Bookkeeping. This add-on is available for an additional charge and assigns a professional bookkeeper to manage your books. However, if you take advantage of this trial, you will not be able to receive a new user discount, so choose wisely.

Why QuickBooks Online wins

Both accounting software products let users invite their accountants by email. If you’re located in the United States, though, there’s a better chance your accountant is familiar with QuickBooks Online than Xero. QuickBooks Online is an industry standard with more than 5 million users worldwide.

We’ll explain our Xero vs QuickBooks comparison findings in greater detail in the following sections. First-time QuickBooks customers can choose to how to calculate inventory purchases explore QuickBooks without committing to a plan by signing up for a 30-day free trial. You can also skip the free trial in favor of locking in 50% off for your first three months — but you can’t choose both.