Tuesday, 13 August 2019

Xero Vs. QuickBooks: Which One is Right for You?

Xero and QuickBooks are two of the most popular cloud-based accounting software in the market. QuickBooks has 1.87 million subscribers, while Xero is fast catching up with 1 million subscribers. Both do an excellent job of maintaining your accounts, but which one is right for you?

Today, we will present a comparison of the main features of both solutions so that you can make an informed decision.


Xero Vs. QuickBooks: A Comparison of Features

Accounts Receivable
Xero allows you to carry out full-cycle accounts receivable including recording payments and making invoices. QuickBooks comes with a reliable accounts receivable module that lets you accept online payments, generate custom invoices and send invoices to customer inboxes. Both can run account receivable ageing report to track customer invoices.

Accounts Payable
QuickBooks lets you manage your bills only in two of their plans. Xero provides accounts payable features in all of their plans, though the basic plan has some limitations. You can pay and track bills and generate accounts payable ageing report to managing supplier payments.

Bank & Credit Card
You can link both Xero and QuickBooks to your bank and credit cards. This way, you can make online payments and download all your transactions in the software automatically. You just need a few minutes to connect Xero or QuickBooks to your bank accounts through an easy process.

Inventory
You can manage inventory in both Xero and QuickBooks, but the feature is available only in advanced plans. You can create purchase orders, record costs and quantities during purchases and track cost of goods during sales.

Foreign Currency
Xero and QuickBooks offer foreign currency feature in their premium plans. You can make payments in any currency, create customer invoices and manage all your bank accounts without breaking a sweat. The software calculates all the exchange rates on your behalf.

Budgeting & Forecasting
QuickBooks provides budgeting and forecasting in their top tier plan, QuickBooks Online Plus. You can create income and expense budgets and also for individual customers or jobs. Sadly, Xero doesn't offer this feature in any of their plans.

Payroll
You need to pay extra in both Xero and QuickBooks to take advantage of payroll features. Xero integrates with Gusto payroll and lets you manage unlimited payrolls. You can also create multiple pay schedules, calculate state and federal taxes and make automated payroll filings.

Final Verdict
While QuickBooks boasts of a larger user base, Xero trumps the market with its robust development schedule. Xero also comes with a simple user interface and is ideal for people with limited accounting knowledge. Xero is adding new features almost every day and about to give a tough competition to QuickBooks.

Xero also has another vital advantage over QuickBooks. You can add as many users as you want without needing to pay anything extra. QuickBooks offers the same advantage, but you need to pay for adding new users. Xero is ideal for businesses that need a simple and effective tool to manage their day-to-day accounting over a cloud-based platform.

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