Xero’s accounting software is highly rated among small businesses. Read our 2024 Xero review to find out if it’s the right solution what is a supplier invoice for your business. When comparing accounting software solutions, QuickBooks Online is a highly recognized name that likely comes to mind. However, other popular systems, like Xero, could be the better choice for running your business. This easy-to-use and feature-rich software is ideal if you have no bookkeeping experience and want top-notch customer support. When it comes to integrations, QuickBooks Online and Xero are neck-and-neck, with each boasting more integrations than most accounting software options.

Can you use Xero to track inventory?

Once your bookkeeper receives all the necessary documentation, they’ll typically complete your cleanup within 30 days. In some cases, your cleanup may take longer depending on timeliness of documentation and the complexity of your books. All of your bank and credit card transactions automatically sync to QuickBooks to help you seamlessly track your income and expenses. Seamlessly connect QuickBooks to your favorite apps and tools, creating a unified hub for your business operations. From CRM systems to payment processors, QuickBooks integrates with a wide range of popular platforms, saving you time and effort. Total cost per year is calculated by adding all the features that require additional fees.

Expense and mileage tracking

We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different products compare with each other and how they work in real-world scenarios. We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances. These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most.

QuickBooks was created in 1983 by Intuit, garnering nearly 40 years of development behind it. A New Zealand-based company launched Xero in 2006 to challenge the growing accounting software market. Intuit also offers QuickBooks Desktop versions for companies that require it, but we will compare the Online version in this guide. To compare QuickBooks vs. Xero accounting, we consulted product documentation and user reviews. We considered features such as invoicing, billing, payments, expense tracking, mileage tracking, project and time tracking and inventory management.

1. Xero also has inventory management, but it’s not one of its core functions.
2. Xero has a slight edge in this category due to its ability to create a sales tax return and pay sales tax liability with either a check or electronically.
3. Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month.
4. QuickBooks is also better for businesses that need to track inventory, as it has built-in inventory management features.
5. Xero offers simple inventory tracking software that can track up to 4,000 finished items.
6. Its intuitive interface and extensive customer support make it accessible to business owners with varying levels of accounting knowledge.

Plans & pricing

It’s designed specifically for small businesses and offers invoicing, time tracking and expense management. Track mileage, send invoices and get a snapshot of your business cash flow with both Xero and QuickBooks. While Xero’s lowest-tiered plan allows you to send and approve up to 20 invoices, partner apps that initiate transactions can automatically contribute to your limit. Xero is a better option for businesses that need to track project profitability. This is because Xero allows you to see how much each project is costing you in real time and compare that to your estimated profits.

Note, each QuickBooks Live offering requires an active QuickBooks Online subscription and additional terms, conditions, limitations and fees apply. For more information about services provided by Live Bookkeeping, refer to the QuickBooks Terms of Service. Keep in mind that the ability to use multiple currencies in the software and invoice is limited to the company’s highest tier, at $70 per month. If using multiple currencies is a priority to you, consider other platforms that offer this capability at a lower cost. Zoho, for example, is accounting software with a free invoice platform that allows you to bill in multiple currencies.

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. Can support larger small businesses with dozens of employees; highest-tier plan includes 25 users. We believe everyone should be able to make financial decisions with confidence. However, the layout and navigation may not be as intuitive for some users, especially those who are new to accounting software. Xero Growing is designed for growing businesses, offering everything in Early, plus bill management tools, additional invoicing, and bulk reconciling transactions.

While Xero and QuickBooks Online have a lot in common (i.e., advanced features and numerous integrations), there are a few features that separate the two. Xero comes out on top for its support of unlimited users at no additional cost — something that is pretty much unheard of in the accounting software world. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits.