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QuickBooks is generally praised for having a more intuitive user interface, especially for users without an accounting background. Xero, on the other hand, might be slightly more suited to accountants and bookkeepers due to its design. The software must have enough reports that can be generated with a few clicks.<\/p>\n
QBO also has a handful of features you generally don\u2019t see with accounting software, including its QuickBooks Capital lending platform and QuickBooks Checking business banking account. Both offer great accounting features and integrations, but which one is better for small businesses? Both Xero and QuickBooks Online have their own versions of transaction tracking tags, but QuickBooks Online is the winner in this arena. Xero lets users create two active tracking categories, while QuickBooks Online allows users to create 40 in the Simple Start, Essentials and Plus plans. The more categories you create, the more reports you can run to get a better idea of how your business functions and where there’s room to grow. Xero\u2019s Early plan, recommended for self-employed how to raise funds for a new nonprofit<\/a> people or brand-new businesses, allows 20 invoices per year.<\/p>\n Plans start at $15 per month for up to 20 invoices, five bills, bank account reconciliation, receipt capture and short-term cash flow snapshots. Its $78-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. Despite not offering unlimited invoices and bills in its base plan, Xero accounting software is a more scalable solution than QuickBooks in terms of the number of users it supports. Xero supports unlimited users with all its subscription plans, while QuickBooks allows only up to 40 users with its highest-tiered plan.<\/p>\n It\u2019s worth noting that QuickBooks uses a first-party payment processor, which means that the money goes through QuickBooks, while Xero uses third-party processors, like PayPal or Stripe. Neither of these is better than the other, but it pays to be aware of the differences. Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. We consider this a draw, and the ratings presented above are simply reflections of the average scores of Xero and QuickBooks Online on review sites.<\/p>\n Moreover, we\u2019d also like to see customization options to enable users to generate reports based on what they want to see. QuickBooks Online\u2019s customer support is better than Xero\u2019s since you can interact with an agent through a phone call. You can\u2019t initiate a call, but you can submit a ticket and wait for an agent to call you. You might prefer QuickBooks for invoicing and A\/R management, and it earned a perfect mark in this category.<\/p>\n This is the exact opposite of QuickBooks, which makes these tools available to all customers. All QuickBooks pricing packages include automatic expense importing and categorization. You can also take photos of receipts and upload them from the mobile app. QuickBooks will automatically match receipts to recorded expenses ultimate guide to financial statement review and compilation<\/a> or generate new expenses accordingly.<\/p>\nFit Small Business Case Study<\/h2>\n
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<\/p>\nA\/R Management: QuickBooks Online Wins<\/h2>\n