Comparing Xero vs Quickbooks Online
QuickBooks Online from Intuit is a market leader among accounting software solutions boasting 80% of the US market share. Xero, founded in 2006 in New Zealand, may be a newer software but it has consistently stronger user reviews.
- Xero gives you an unlimited number of users for all plans. This comes in handy if you need to give accounting access to more than 5 people without paying a hefty fee.
- 1000 app integrations including Gusto for payroll, Xero offers you plenty of options for maximising functionality and results
- The minimalist, user-friendly dashboard gets an 8.9 usability rating on TrustRadius which shows that Xero is easier to use
- As a newer software, founded in NewZealand, Xero is less commonly used by accountants in North America and this could limit collaborations.
- Limited invoices for Xero’s starter plan means that you have to pay for the second tier and above to get unlimited invoicing.
- Xero’s simple reporting tools may be ideal for small businesses but may limit a growing business’s capability to run detailed reports
The Pros of QuickBooks Online
- QuickBooks Online (QBO) is easily scalable thanks to its robust reporting tools which can give your growing business more detailed insights on the way forward.
- As one of the more established CPA softwares, QuickBooks Online has a
- Transaction, time and mileage tracking. QuickBooks Online allows all users to track upto 40 transaction categories. Mileage tracking is built into all plans while time tracking is available from the second tier and above. These are important business reporting metrics.
- All of QuickBooks Online plans support unlimited invoices, which gives businesses more wiggle room.
The Cons of QuickBooks Online
- Expensive at the highest tiers at $180 for the Advanced Plan
- Limited number of users and accountants. QBO’s most expensive plan $180 limits you to 25 users and 3 accounting firms and even its most popular plan (Plus) only allows 5 users and 2 accounting firms
The differences between Xero and QuickBooks Online aren’t disadvantages. Rather, their relevance depends on how and where you do business and how big your outfit is. Both CPA software apps offer a 30-day free trial, which you should take advantage of to better understand the app that best fits.