When it comes to Cloud accounting software, Xero and Quickbooks are very close competitors. Xero online accounting and Quickbooks Online are online accounting software and competitors in the global market. Quickbooks was developed in 1983, whereas Xero is relatively new, developed in 2006.
Both of these platforms cater to small businesses and rely on technology to make things easier for the users. However, there are a lot of differences between them, and businesses need to know these before making an informed decision. A platform may work better for certain businesses than others, making it vital to know all the features of both platforms before opting for one.
Despite having been created for the same purpose, Xero online accounting and Quickbooks have a lot of differences. Both platforms provide multiple services to their clients, which may differ entirely from one another or have some distinguishing features. Here are some important differences between the two:
- Pricing: Both Xero and QuickBooks have been created on monthly subscription models; however, they charge different prices. The basic plan at Xero costs $12 per month, whereas QuickBooks charges $15 per month for the basic plan. The highest-paying plan available at Xero is accessible to unlimited users, whereas the highest-paid plan at QuickBooks only allows 40 people to use the platform. Even so, Quickbooks can ask different users to create their own paid accounts, whereas Xero has no such requirement.
- Availability of government grants: There are a lot of government grants that are only catered for Xero. For example, the accounting PSG Grant applies for both Xero and Quickbooks but it’s easier to find a more suitable Xero firm since more accounting firms offer the accounting PSG Grant for Xero over Quickbooks.
- User friendliness: Both Xero and QuickBooks are very user-friendly. However, Xero was made to cater to small businesses, accountants as well as bookkeepers, whereas QuickBooks was created primarily for small businesses. As such, QuickBooks expects no technical knowledge on the part of the user at all, whereas Xero may require a certain level of knowledge.
- Bookkeeping: Xero bookkeeping is a special function that allows real-time bookkeeping for businesses and can be used by both bookkeepers as well as small businesses. QuickBooks booking keeping also provides a similar service which is mainly created to be used by the small businesses themselves.
- Online/offline: QuickBooks, as opposed to Xero, can be used on the desktop as well and does not entirely rely on the internet. This feature makes the platform good for businesses who want to keep an accountant and conduct some manual work. Xero, on the other hand, provides real-time collaboration between accountants and clients through the cloud. This can go on to save a lot of time for both parties. Similarly, Xero bookkeeping allows the bookkeepers to collaborate with clients in real-time.
- Inventory: Some businesses also prefer to keep their inventory with their accounting software. Both QuickBooks and Xero provide inventory features; however, as far as Xero is concerned, inventory is not a prime feature of the software.
- Features: In regards to features, Xero allows more features with multiple third-party integrations allowed on the platform as compared to QuickBooks. Xero provides a lot more updates as well, which are helpful in the growth of the business. However, when it comes to scalability, QuickBooks has proved more helpful to clients.
Both Xero and Quickbooks are great accounting software companies for small businesses. It all depends on your company and what you’re looking for. If you’re a Singaporean small business, you should definitely go for Xero since you can take advantage of the PSG Grant and use Xero at a hugely subsidised cost. But Quickbooks may be more suitable for American companies that require a lot of assistance or that use a lot of software that are already integrated with Quickbooks. The important thing is to do your research and due diligence beforehand.
Both QuickBooks and Xero are easy to set up and offer a huge range of banking integrations for many regions. There used to be a bit more friction with Xero here, but now it’s just as easy as QBO to sync your bank account.
Xero and QuickBooks Online are both powerful accounting software solutions for small businesses. However, when you compare features, QuickBooks Online is the stronger candidate, especially for business owners who prioritize scalability and the ability to loop in accountants.
You can’t add your Quickbooks data to an existing Xero organization. You’ll need to create a new organization before you can upload your file. Conversion and organization setup typically happens in three hours, but may take up to a few business days (depending on how much data you’re converting).