Doing accounting, financial and other administrative tasks for your small business is now definitely a lot easier, thanks to the development of cloud accounting software's. So if you’re considering just now to make use of this technology as you grow your business, you’d most probably come across the two main leaders in the cloud accounting industry (as of writing): Xero and QuickBooks. And with both being reputable brands in the business, knowing which of the two is the perfect accounting software for your small business could actually be quite confusing or overwhelming.
Having said that, we’re here to provide you with a detailed yet easy-to-understand guide to help you differentiate one from the other. So read up and see which of the two really stands out to be the perfect fit for your business’ needs.
Popularity since launch
- XERO: Xero is not really considered as one of the pioneers in the business; but ever since its launch last 2006, it has truly impressed everyone for gaining much more popularity, not to mention more positive customer feedback, in a shorter period of time. By managing to present a ‘more beautiful’ yet simpler way to do accounting, Xero truly deserves a round of applause. Hence it was also awarded as the winner of 2017’s Expert’s Choice Awards for the online accounting app category.
- QUICKBOOKS: QuickBooks Online has been a cloud accounting app/program for many years simply because they have been around since 2004. It is a popular choice for small businesses that are new and already existing, specially in the US. Many freelancers and online business owners prefer this for the fact that more people now recognize its brand name.
Your homepage dashboard
- XERO: If you are the minimalistic type, Xero’s simple and pretty basic dashboard is perfect for you. In their aim to provide stress-free and convenient monitoring of your business, they developed a dashboard that is easy to use and understand. One of the great things about its dashboard is that while it already lets you see the vital info and metrics in just one click, you can also hover over the items seen on the dashboard so you could learn about the other details. And most of all, it has a unique ‘Account Watch List’ that enables you to track the balances of your business’ major bank accounts. Talk about ease-of-use!
- QUICKBOOKS: QuickBooks on the other hand boasts of a beautifully designed homepage dashboard. Yes, it does present detailed info on your company’s performance metrics and other analytics. However, due to its latest UI update, many seem to be complaining on how it’s now more difficult to use.
General features
Both technically provide the same features - like a 98 to 100 ratio. But there’s a catch:
- XERO: Xero is basically at par with QuickBooks even though it was launched 2 years later. It offers accounting, invoicing, inventory, and more. However, it just lacks on one particular area: project management. Currently it doesn’t have that.
- QUICKBOOKS: On the other hand, even if QuickBooks Online provides you complete features - from accounting, to taxation, and project management, they wouldn’t allow you to easily enjoy everything. You will be allowed to access certain features depending on your plan; as opposed to Xero’s plans that do not limit you from using any of their features. Thus, if you really want to gain access to 100% of its features, it’ll be more costly.
Pricing
- XERO: Xero offers its users 3 kinds of plans to choose from: the Basic, Standard, and Premium. What you’ll choose basically depends on how big your business is. But all in all, Xero’s plans are more affordable and reasonable for more established companies as they provide payroll at no additional costs and allows unlimited users for each kind of plan. Prices of the plans range from USD 9 to 180 per month.
- QUICKBOOKS: They also offer 3 payment plans for their clients with prices ranging from USD 15 to 50. On the other hand, if you do choose to get payroll services, you’ll need to add $25 each month AND $5 for every employee on your payroll. Hence, QuickBooks is technically the cheaper option for small and startup businesses.
App Integration
- XERO: They currently provide the largest collection of third-party integrations with having about 500 apps enlisted in their software, and still counting. Apart from these numerous integrations, another great thing about Xero is that it allows you to put in minimal manual effort in dealing with documents and doing emails because of the integration with Google Docs and Constant Contact.
- QUICKBOOKS: QuickBooks also boast of about 400 third-party apps in their software. Plus, being in the industry for a longer period of time, it can be used seamlessly with the renowned e-Commerce setups.
Technical Support and Customer Service
- XERO: According to customer reviews, Xero has got the best customer service by far in the industry. Their technical support group is really available 24/7 throughout the year. And because their in-house staff is basically active all the time, they respond to customer queries and concerns faster. Plus, you will find in their website numerous threads that contain valuable information like how-tos, troubleshooting, and other eCommerce assistance.
- QUICKBOOKS: We do have to give proper credit to QuickBooks Online for having a large network of accounting specialists all over the globe (referred to as ProAdvisors). You can reach out to them if ever you need help. On the other hand, QuickBooks’ in-house staff shows very minimal presence; hence the disappointment of many users. Generally, their support isn’t as fast and up-to-rank to what Xero provides.
Hardware requirements and Device compatibility
Because both are cloud-based accounting softwares, they can be used in any kind of device - Windows, Apple, Android, Microsoft, Google, etc. But there are minimal differences between the two:
- XERO: Their software can be used in nearly any device - mobile, tablet, notebook, PC, Mac, and even a Linux.
- QUICKBOOKS: Thing is, Xero is ahead of them on this one because QuickBooks Online isn’t available for Linux users.
THE WINNER:
As expert business advisors, we simply can’t ignore the fact that QuickBooks Online is one of the leaders in the industry. This is also the reason why most business owners who have gotten into using cloud accounting software systems use QBO. However, since we’re here to make a tough call between the two, all in all, considering all current conditions, we’d have to say Xero definitely got ahead in the competition in most areas. Because of its unlimited access to features and number of users, biggest network of third-party applications, compatibility, and most importantly, customer service and support, Xero is now considered as the best cloud accounting software. If you’re looking to try out a cloud accounting software for your business, whatever your needs are, choose one that’s going to give you competitive accounting capabilities, go for Xero.
