Business can be complex to operate if you don’t track your finances. Small business owners often struggle with it for multiple reasons. They lack the knowledge, experience and the right tools. However, with modern day cloud-based accounting tools, you can maintain your finances with ease.

Xero and Quickbooks are two of the famous softwares for bookkeeping and accounting. Both have a lot of features designed specifically for small businesses. Quickbooks might have more features than Xero, but Xero is almost there, and definitely giving QBO a tough competition.

Quickbooks vs Xero for Small Business – What’s Best?

Well, with a war between Quickbooks vs Xero for small business – which one should you choose?

This detailed comparison will help you see the main differences between the two and guide you which one is the best choice for small business.

Quickbooks Accounting Software Overview

QuickBooks accounting software started their journey in 1992 and is best to provide services for small to midsize businesses. They initially started the journey with a desktop version of the software, and later, they also launched an online version which made them so popular worldwide.

The software has all the features a modern day accounting and finance department of your business requires. It offers core accounting features like- invoicing, expense tracking, bank and credit card reconciliations, payroll management, reporting and inventory management. Additional features include time tracking, CRM, project management, tax preparation, and mobile app integration.

The software is quite popular among accountants and bookkeepers. In 2023, Quickbook had 6.5 million subscribers and 84% of its users were from the United states. It is also quite popular in Canada, The Uk and Europe. 

Since QuickBooks is most popular, there are thousands of professionals or QuickBooks Pros to help you out. The software has a default tool to share access to your account and get help maintaining data privacy.

It has four pricing plans- simple start which is around $30 dollars per month, essentials is $55 dollars, plus is $85 dollars and advance which is $200 dollars. 

Overview of Xero

Xero was established in 2006, much later than Quickbooks but just like Quickbooks it provides features such as invoicing, billing, expense tracking, reporting, analytics, and contact management. Additional features include payroll, inventory management, project tracking, purchase orders, multi-currency support, tax compliance, mobile app access, and integration with other business applications. Security measures are also in place to protect financial data.

This was made for in-house bookkeepers and accountants and offers multi-currency support. The interface is user friendly, so anyone with a low learning curve can operate it.

In 2023,  Xero had around 4 millions subscribers and 1 million subscribers are from the United Kingdom alone, it’s also quite famous in New Zealand and Australia. 

Pricing is similar to Quickbboks and it has 3 pricing plans- starters is $25 a month, standard $40 and premium $55 each month. Each pricing plan has unlimited users on account. 

Comparison Between Quickbooks and Xero

Why Choose Quickbooks 

If you want customized invoice templates, income and expense tracking, advanced tax tools, automate recurring invoices, set payment reminders then quickbooks is definitely for you. It is a comprehensive expense tracking platform that allows users to link bank and credit card accounts, categorize expenses, and assign them to specific projects or clients.

It will help you with advanced accounting like tax calculations, managing payrolls automatically. It is perfect for small businesses to simplify the payroll system. It also provides  trend analysis, financial forecasts and detailed reports on inventory management as it has built-in inventory management. 

The system may require help from videos, tutorials to learn as it can be challenging for the beginners. Once you learn it, it will be quite easy to operate. 

Why Choose Xero

Just like quickbooks xero offers customized templates,  income and expense tracking, advanced tax tools, automate recurring invoices, and set payment reminders. But xero also offers multi-currency support and profitability tracking. And the best part is in this software you can add as many users without paying extra. This includes your bookkeeper, accountant, tax advisor, and employees.

Xero is easy to use and has minimalist user experience. You don’t need to be a pro to use it, because the navigation system is straightforward. The 24/7 customer support can be a lifesaver as you can get help any time you want. 

One of the biggest advantages is it has over 1000 third party integration. These integrations cover CRM, inventory, payment, and project management tools and its open API lets businesses make custom integrations for their specific needs.

QuickBooks vs Xero –Which One You Should Choose?

As a small business owner you might be wondering which one you should choose. But first you have to identify what your business needs. You need to think about your budget, users, bookkeeping complexity and what kind of features you actually need. 

Xero is cheaper with unlimited user options, while Quickbooks is a little more expensive and has a limited user of 25 at the highest pricing plan. If you dont require advanced software then Xero is your go to go option. For larger businesses that need in depth accounting Quickbooks is best. It also has the most tailored solution than Xero for the customers. For fast customer service many often go for Xero, since the other software provides customer service for limited hours. As in the US , Quickbooks is very famous. 

You need to think about your business growth and scalability to choose your accounting software. Consider your needs while selecting, because your entire business health depends on it. 

How Can We Help?

Are you still unsure which one you should choose for your business? Then let us help you. We, the Bookkeeping Deck have a team of skilled professionals who will assist you to choose the right dotware for your business. 

We will work with you to understand your business nature, objectives, budget and what kind features you need for your firm. Our recommendation will be tailored for your needs.

Let us be your trusted consultation partner, who will guide you to choose whether you should choose Quickbooks or Xero. contact us today via phone or email.