We have apps for payments, payroll, reporting, project management, and more. Xero offers simple inventory tracking software that can track up to 4,000 finished items. With Xero, you can view the number of items you have available and see the total value of stock on hand for any item. Its inventory management reports will show you how well different items are performing and which ones are the most profitable. And you can also easily add inventory Items to quotes, invoices and purchase orders to make billing easy. The app has a built-in timer you can use to record time as you work, or you can use the location-based job tracker through the mobile app.

Tax: Xero Wins

For instance, QuickBooks Online allows you to add an inventory item from the invoicing screen, something you can’t do with Xero. QuickBooks Online didn’t always have fixed asset accounting features, but they’ve been recently added to the highest tier, Advanced. Now, just like Xero, QuickBooks Online allows you to record a fixed asset purchase, track the asset, and calculate depreciation. the basics of accounting A standout Xero reporting feature is the ability to mark the reports you run most often as favorites. This way, you can access these reports near-instantly upon logging into Xero. Plus, no matter what, profitability reporting and data are available right from the Xero dashboard.

You can also cancel anytime with QuickBooks, whereas Xero requires a month’s notice of cancellation. Xero and QuickBooks Online are both user-friendly, streamlined accumulated depreciation and cloud-based. They both have an app, and pricing based on a monthly subscription model. With our mobile quotes, invoicing, and inventory management features, you always have the right tools for the job. Xero supports unlimited users, making it easy to do your accounting from anywhere.

1. There are no manual uploads needed, and you can set up secure, encrypted feeds from any number of different bank accounts.
2. Unlike some other vendors, QuickBooks leaves no questions about what you get for your dollar.
3. The main differences between Xero vs QuickBooks lie in features and pricing.
4. It’s also cloud-based and designed for use on the move, so you can access it from your laptop, smartphone or other mobile device.
5. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.

Popular features

Many accounting solutions have expense tracking tools, but we found that QuickBooks makes them especially user-friendly. It takes just a few clicks to run through various accounting functions and get your expenses in order. In our eyes, QuickBooks’ expense-tracking features are among the best around. Beyond built-in integrations, QuickBooks offers more than 750 connections with other platforms — a quantity that impressed us. Some of QuickBooks’ most popular app integrations include the payment app BILL, the line of credit solution Fundbox, and the expense management platform Expensify. As the leading business accounting software platform, QuickBooks is unsurprisingly a standout when it comes to integrations.

Wave Accounting

While the two both offer similar features, such as tax management, financial reports, integrated payroll, inventory and file storage, the two are not without their differences. Forbes Advisor compared Xero vs. QuickBooks when it comes to the key features, pricing, customer service and reviews to help you decide which is right for your business. The best small business accounting software depends on your unique needs. Ideally, your software should cover the core finance features you use every day – like invoicing, payroll, expenses, and cash flow management. Accounting software is essential for more than keeping your books current.

We found all these features to be user-friendly in Xero, and we were happy that they are available to all users. You can also use the QuickBooks mobile app to track mileage and run expense reports and cash flow statements. From the desktop suite, you can set custom rules for categorizing all expenses.

Accountants praise Xero’s automatic bank feeds, usability, and simplified payroll. When it comes to doing your tax return at the end of the year, they have everything they need to get going. It’s also easy for accountants to fix user errors in Xero, and there are built-in proper audit trails and safety checks. If you want access to their Gusto full-service payroll (available across all 50 states for inventory ins and outs US customers), pricing starts at $39/month base + $6/month per person. The chart of accounts is easy to manage, customize and track spend for each category. NerdWallet independently reviews accounting software products before determining our top picks.