Xero’s reporting tools impressed us overall, even though other platforms include a wider variety of reports. For example, you can’t use Xero to accept tips via invoices as you can with QuickBooks. On top of that, you can only convert quotes, not estimates, to invoices in Xero. This disappointed us, but not as much as the narrow client payment options available. You can only accept payments via card or direct debit with Xero, boxing out clients who prefer newer technologies.

How QuickBooks Online can help your business differently

However, Xero is missing some of our favorite QuickBooks expense-tracking features, such as cash flow statements. As with QuickBooks, you can use Xero to automatically import and categorize expenses. Other mutual features include receipt photo upload, mobile app mileage tracking, expense reporting and adding billable expenses to client invoices. Perhaps our favorite Xero bill pay feature is that you can use the platform to schedule batch payments for one or many vendors. This is the easiest tool we encountered in any accounting software platform for making timely payments in one click.

Xero: An accounting software alternative to QuickBooks

Xero is more common outside of the US, and UK and New Zealand accountants in particular will likely recommend it. Read on for our summary of when QuickBooks tends to be a better Xero alternative based on your business and goals. Xero and QuickBooks both offer a good number of integrations in their respective marketplaces. QuickBooks Online is rated 4.2 out of 5 on Capterra by 3520 users, while Xero has an average of 4.3 from 1880 users.

Customer Support: QuickBooks Online Wins

All in all, it’s unlikely that your accountant will have any issues with working with QuickBooks. If you’re based in the US, your accountant’s main complaint might be lack of experience with Xero. QuickBooks is the market leader in the US, so they will likely be used to working with that.

QuickBooks can also track your how to find retained earnings mileage reliably and automatically using a GPS-enabled smartphone app. The main limitation of QBO’s Essentials is access for only one user. FreshBooks can be a good option for freelancers and contractors looking for an affordable, simple accounting software.

Customer Service

Having an independent software expert perform the bookkeeping is good for overall ease of use. Lastly, our expert opinion score accounting degree programs by state is our subjective rating based on our experience in trying the software. Businesses with inventory items should choose accounting software that can track inventory costs, manage cost of goods sold (COGS), and monitor inventory units. QuickBooks Online takes the lead because it’s generally easier to use than Xero. While Xero is easier to set up, QuickBooks has a more intuitive and customizable dashboard and has time-saving features.

Both can integrate seamlessly with Wise Multi-currency account which is specifically handy for sending and receiving international payments. While searching for accounting software, you might also come across something called QuickBooks Online Essentials. This is understanding accrued expenses vs. accounts payable a different product than the ordinary accounting software, and it’s specially designed for service-based businesses which invoice for their time.

It’s also less expensive than QuickBooks Online and a bit easier to use, thanks to its customizable dashboard and simple layout. 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. You might prefer QuickBooks for invoicing and A/R management, and it earned a perfect mark in this category. It offers plenty of customization options, which can be a great deal for those wanting to present and maintain a professional brand image. On the other hand, Xero lets you add your company logo and edit fields, but you can’t change the invoice colors.

1. QuickBooks and Xero are two of the best accounting software options with a range of pricing plans to fit multiple budgets.
2. Xero and QuickBooks are both great accounting software options for small businesses.
3. FreshBooks can be a good option for freelancers and contractors looking for an affordable, simple accounting software.
4. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks.
5. Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge.
6. QuickBooks Online’s customer support is better than Xero’s since you can interact with an agent through a phone call.

We collect the data for our software ratings from products’ public-facing websites and from company representatives. Information is gathered on a regular basis and reviewed by our editorial team for consistency and accuracy. All plans include 24/7 live chat support; phone support is available 5 a.m.