For small businesses that want to keep an eye on their finances, Xero online accounting and QuickBooks Online are two of the most common accounting software applications. Although both offer similar features, including tax management, financial statements, inventory, integrated payroll services, and data storage, there are some major differences between them. In this article, we are going to see the features and differences between these two accounting applications. In the end, we will compare the circumstances of different companies to figure out which accounting system suits you the most. Let’s dig in.
What is Quickbooks Online?
Quickbooks Online is a cloud-based application that helps businesses simplify repetitive tasks, such as tracking projects, managing bills, handling invoices, and much more. It uses a double-entry accounting method and also supports accrual and cash-basis accounting systems.
It comes with a wide range of features, hundreds of useful integrations, and easy-to-use mobile apps. This accounting software has an intuitive user interface, which makes it a great choice for beginners. Even though it comes with an advanced plan that can support up to 25 different users, Quickbooks is best suited for small and medium-sized
enterprises. According to its claims, Quickbooks clients save an average of $3,534 in tax every year. To learn more about how Quickbooks works, you can visit their official website.
Pros and Cons
|It has solid mobile apps.|
|Quickbooks Online is easy to use.||It is expensive.|
|It comes with many advanced accounting features.|
What is the Xero Accounting System?
Xero is also a cloud-based accounting application used by accounting services London that mainly uses accrual and cash-basis accounting systems. It also supports the double-entry accounting system. This cloud-based accounting application comes with a wide range of accounting integrations, Android and iOS accounting mobile apps, and other features that help companies to keep their books balanced while making it easy to track their business finances.
It’s a user-friendly, intuitive, and powerful accounting application that can support unlimited users, making it more efficient to grow your team and business. This makes Xero online accounting software one of the best fits for medium and large enterprises. While small businesses can also choose Xero for its amazing benefits, the learning curve and the limited features of its lowest-tier versions may do more harm than good.
Pros and Cons
It’s most suitable for large and constantly
Xero comes with a steep learning curve.
Xero supports unlimited users for
The lowest-tier plan is extremely limited.
Advanced accounting features
The Difference Between Xero and Quickbooks Online
Now that you have a basic understanding of both of the accounting applications, it’s time to make a Xero vs. Quickbooks UK comparison, so you can see what makes them different from each other.
Who is it best for?
From small to medium-sized companies.
Businesses that won’t have more than 25 accounting software users.
From medium to large-sized companies.
Companies that need the unlimited accounting software user feature.
Pricing (UK price without discounts and special offers)
|£8 – £70 per month.||£14 – £49 per month.|
Features that stand out
Advanced invoicing feature.
Built-in lending feature.
Xero accounting supports unlimited users without any extra cost.
Top-class customer support management system.
You need to subscribe to higher-tier plans to add more users.
No email support.
Some of the critical features, such as inventory management are only available on the high-tier plans.
Zero tax support.
No phone support.
It comes with a very steep learning curve.
When Should You Choose Quickbooks?
We have given you brief Quickbooks UK reviews earlier in this article. But is this accounting software a good option for your business? Let’s find out.
You’re Looking to Get More Value at a Low-cost
Quickbooks UK comes with a price point as low as £8 per month. With its £12 per month package, you can easily track your business expenses, send multiple invoices and bills, and keep your taxes in check. In other words, you get everything you need to run your business smoothly. Quickbooks Online is a great choice, especially for small businesses and freelancers who want great accounting software at a low price.
You Want Advanced Reporting
If you have enough budget to fork out £70 per month, Quickbooks UK will give you access to advanced reporting to track your gross revenue, net profit, and other parameters. When it comes to creating a personalized dashboard, including profitability analysis, budgeting, and forecasting, Quickbooks Online is way ahead of Xero online accounting.
Your Business is Operating in the US
If your business is based in the US, you are better off choosing Quickbooks instead of Xero as your accounting software. Quickbooks Online is the leading accounting software in the US and has an 80% market cap. On the other hand, Xero is more suitable for companies outside of the US.
When Should You Choose the Xero Accounting System?
Are you planning on moving from Quickbooks to Xero? Let’s find out who should be choosing the Xero accounting application instead of Quickbooks.
Your Startup is Constantly Expanding
When it comes to scalability and in-depth functionality, Xero beats Quickbooks by a long margin. If you start your business with Xero as your accounting software, it will also evolve with your growing company thanks to its excellent functionality, add-ons, time tracking, and over 800 other integrations.
You Like a Minimalist User Interface
There are multiple reasons why many medium and large-sized businesses prefer Xero accounting software over Quickbooks Online. And its superior user experience in the face of complex accounting calculations is definitely one of them. It looks better. It’s minimalistic, more modern, and has a sleek user-friendly interface.
Your Business Operates Outside of North America
While Quickbooks online is dominating the US market, businesses outside of the North American continent, especially companies in Europe and New Zealand, prefer Xero over Quickbooks. Accountants outside of North America find it easy to fix user errors, calculate tax returns, check automatic banking feeds, and perform proper audits using Xero.
Both Xero online accounting and QuickBooks Online are excellent online accounting applications used by many businesses all over the globe. They both have a robust set of features, an intuitive user interface, and competitive rates. Nevertheless, QuickBooks is best suited to companies that need desktop accounting systems and delegate their accounting duties to a bookkeeper or auditor at bookkeeping Glasgow. On the other hand, Xero is better suited to companies that want an online accounting application that can bring unlimited users on board.