The main difference between Xero vs QuickBooks Online is that Xero is still catching up to some of QuickBooks Online’s functionality. However, Xero is known for its simplicity, and their newly formed aggressive development schedule, offering new features and functionality at a fast pace.
What Both Xero and QuickBooks Offer
Here’s what you need to know about how Xero Accounting compares to QuickBooks Online. If you need basic accounting software, you are generally going to get the same functions whether you choose Xero Accounting or QuickBooks Online:
⦁ Bank synchronization
⦁ Bank reconciliation
⦁ Accounts payable
⦁ Accounts receivable
⦁ Inventory
⦁ Invoicing
⦁ Bill management
⦁ Payroll
⦁ Financial reporting
⦁ Cashflow quick views
⦁ Multi-currency
⦁ Document sharing
⦁ Quotes
With regards to the features offered, QuickBooks and Xero are very similar. Both of the cloud accounting software companies offer the main accounting features such as bank reconciliation, chart of accounts, fixed asset management and several accounting reports. Each software uses double-entry accounting and supports cash-basis and accrual accounting.
QuickBooks does however offer a Lending feature and a Project Management feature that Xero doesn’t offer. In terms of usability, it is easy to get used to the QuickBooks Online software and learn how it works, there is only the occasional navigational difficulty. On the other hand, Xero only becomes easy to use once you get to know the software. The setup can be time consuming and a bit of a learning curve.
For small businesses, QuickBooks Online is a more affordable option and Xero’s smallest plan only gives users 5 invoices and 20 bank transactions.
Despite the complaints received by QuickBooks, there are many users that are very happy with the software and most of the ratings for QuickBooks Online have increased at a steady rate over the last year. Reviews show that users appreciate the mobility QuickBooks Online gives to users and how easy it is to use. Accountants praise QuickBooks Online about their reports, chart of accounts and bank reconciliation features and many businesses report that QuickBooks Online saves them time and keeps their companies organised.