Higher-tier plans include unique features, like workflow rules, on top of tools that help you measure project profitability. Phone support and live chat support are available 24/5 to all paying customers, but third-party integrations are limited compared to QuickBooks Online and Xero. Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.

The Online plans start at $35 per month while the only current Desktop version, Enterprise, must be paid annually and start at $1,922 per year. QuickBooks is a popular accounting software used by small businesses, solopreneurs and freelancers. The software helps users to keep track of their finances, customers and vendors. This is because QuickBooks was designed for small businesses that might not have an accounting background, whereas Xero was designed with accountants and bookkeepers in mind. QuickBooks is also better for businesses that need to track inventory, as it has built-in inventory management features. Xero also has inventory management, but it’s not one of its core functions.

Account Information

However, while Xero allows for unlimited users, QuickBooks Online lets you have only up to 25 total seats, depending on the plan you select. Xero Growing is designed for growing businesses, offering everything in Early, plus bill management tools, additional invoicing, and bulk reconciling transactions. Those who want to take their accounting on the go will appreciate the mobile app. It brings most of the features of the online platform, plus it enables mileage tracking and receipt capture for quick and convenient recordkeeping. QuickBooks Online is a good option for many small businesses that are looking to make invoicing customers easy and integrate invoicing and payments into the general ledger. Small businesses can customize how they use the platform so that they only use the features they need.

QuickBooks Live for QuickBooks Online

Xero is more affordable and scalable than QuickBooks since all subscriptions have unlimited users. If you have a microbusiness and only need to manage and track a few bills and invoices, then you might do well with Xero’s Early plan. However, if you work with multiple vendors and customers and need more enhanced features, you should consider QuickBooks Online’s Plus tier. A popular add-on is the payroll feature where you can run payroll and access benefits in one convenient place. It does cost more to access this, which is approximately $22.50 more per month plus $6 per employee, per month. When subscribing to this service, you’ll get a 1099 e-file of forms and a next-day direct deposit.

Reporting abilities are limited, though a raft of third-party integrations are available (many cost a little extra, but some are free). QuickBooks is the leading accounting software for small businesses, designed to simplify financial management and empower growth. With a user-friendly interface and a comprehensive suite of tools, QuickBooks streamlines tasks like invoicing, expense tracking, and reporting, giving you a clear picture of your financial health. From automating payments to managing payroll, QuickBooks offers a scalable solution that can adapt to your business needs. The Plus Plan is $45 per month for the first three months, then becomes $90 per month, and adds up to five users.

1. Transactions can be imported from bank accounts, credit cards, or third-party services like PayPal and Square.
2. You can search the online directory to locate financial professionals who specialize in working with your industry.
3. The platform offers a comprehensive range of accounting tools, from invoicing and expense tracking to payroll and inventory management.
4. QuickBooks Online came out on top for several features, ease of use, and customer support among others, but Xero wins in pricing.

Here’s how each accounting software vendor breaks down their services, so you can see how they compare. Xero’s financial reporting features start with its interactive reports and budgets, updated in real time throughout the week. You can set specific KPIs, and can jump to detailed transactions when you need more info.

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Integrates with more than 750 apps and offers live, in-house bookkeeping add-on. This doesn’t mean QuickBooks Online is the right choice for all businesses, though. Xero’s unlimited-users feature makes it a winner among larger businesses and well-established small the difference between accounts payable vs accounts receivable businesses that require more than five users. It’s also less expensive than QuickBooks Online and a bit easier to use, thanks to its customizable dashboard and simple layout.

Xero also integrates with other business applications, such as payroll and inventory management systems. This makes it a versatile tool for small businesses that need to streamline their operations. QuickBooks has earned the trust of millions of small businesses due to its robust features and user-friendly design. The platform offers a comprehensive range of accounting tools, from invoicing and expense tracking to payroll and inventory management. Its intuitive interface and extensive customer support make it accessible to business owners with varying levels of accounting knowledge.