Xero updates the exchange rate every hour and revalues the company balance. It lets users view transactions, invoices, or bills in a foreign currency. Users get insights into business cash flow with the status of expense claims, bills, and details of money coming in with charts and graphs. Xero allows simple vs compound interest definition formula examples real-time cash flow updates and online collaboration with bookkeepers, employees, and accountants for tasks like submitting expenses and sending invoices. The cheapest combo, QuickBooks Simple Start + Payroll Core, is $75 per month plus $5 per person.

Customer Service and Support

If needed, you can easily send customers reminders, and can match any payments received with the what goes on income statements balance sheets and statements of retained earnings correct invoice for efficient bookkeeping. QuickBooks and Xero are both solutions with great tools for core accounting needs like bookkeeping, account receivable tracking, and payroll functionality at an additional cost. QuickBooks Online has four pricing plans ranging from $35/month to $235/month. The more expensive QuickBooks plans include additional features and users. Xero offers three pricing plans that range from $15/month to $78/month.

Basic inventory tracking in all plans

The desktop version is installed on a computer, while the online version is accessed through a web browser. QuickBooks Online includes all the components of the desktop version, plus additional features such as more app integrations, a fully functional mobile app and more attractive pricing. The Online plans start at $35 per month while the only current Desktop version, Enterprise, must be paid annually and start at $1,922 per year.

QuickBooks Online outclasses Xero in this category as it offers more useful features that aid in setting up the software. Xero took a hit for its lack of assisted onboarding support and new company wizard, but it does offer the ability to import beginning balances—a feature that QuickBooks Online lacks. Both have great A/P features, but QuickBooks Online is slightly better due to its ability to generate recurring payments. Xero lets you create a recurring bill but not the payment, which means it doesn’t charge your checking account automatically.

1. Has robust reporting tools and report customization options, basic inventory tracking in all plans and a capable mobile app; Early plan limits the number of invoices and bills.
2. For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero.
3. It offers tools for time tracking, project planning, budgeting, expense monitoring, quoting, and invoicing.
4. While it’s not part of our case study, we evaluated Xero vs QuickBooks Online in terms of assisted bookkeeping.
5. One advantage of QBO over Xero is that it lets you update details about the client directly in the invoice rather than needing to go through their contact record.

Account Information

Streamline billing, automate invoice reminders, and easily track your spending with Xero accounting software. 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.

While it’s not part of our case study, we evaluated Xero vs QuickBooks Online in terms of assisted bookkeeping. QuickBooks Online is the clear winner because of its wide range of services available for users of the software. Not only does it offer QuickBooks Live, but most online services also work with QuickBooks Online, such as Bench, Brainy Advisors, and Merritt Bookkeeping. While Bookkeeper360 provides bookkeeping services for Xero users, it is also compatible with QuickBooks Online. We declared this category a tie because Xero and QuickBooks Online aced it. Both providers allow you to record adjusted journal entries, modify your chart of accounts, and provide accountant access.

QuickBooks payroll feature streamlines payday tasks by setting up the payroll to run automatically. Users can run payroll anytime, and the difference between shareholder and stockholder teams will get paid on time or the same day through direct deposit. Xero allows companies to set up sales tax rates to calculate sales tax automatically. Users can also generate sales tax summaries, edit tax rates whenever needed, and prepare tax reports for return. Xero also has a built-in timer to track time invested in a particular task.