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 calculating arppu for ios and android apps you work with multiple vendors and customers and need more enhanced features, you should consider QuickBooks Online’s Plus tier. 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.
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Both do a great job of accounting for inventory and calculating the cost of your inventory sold automatically. However, inventory accounting is included in all Xero plans, while it’s only in the Plus and Advanced versions of QuickBooks Online. So, if you want a low-cost inventory management solution, go with Xero. QuickBooks offers live phone and chat support six days a week, providing you with a direct line to experts whenever you need them. With personalized assistance, you can tackle any accounting challenge with confidence and keep your business on track.
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As of 2017, you can also produce GAAP-compliant Statement of Cash Flows for your client reporting needs using Xero’s single integrated reporting solution. If you’re looking for a QuickBooks alternative, Xero is one of your best options. QuickBooks has been GAAP and IAS compliant for longer than Xero, and has been the preferred choice of many accountants for some time.
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You can add your logo to your invoice templates, and change the color to fit your business’s branding. And while the Advanced tier of QuickBooks offers 24/7 support through live chat, phone lines, and email, their other tiers only offer a live chat option. Just keep in mind that unlike the inventory feature in QuickBooks Online’s higher-tier plans, Xero doesn’t let users set up reorder points that flag when stock is running low. You can do a lot with QuickBooks Online, but all the options may feel like information overload starting out.
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Like QuickBooks, Xero has a function to automatically calculate sales taxes for each invoice, as well as state or city taxes. A tax default can be set for any purchase, and Xero offers an integration with Avalara TrustFile in order to help you file your returns. Xero’s software also lets you map your accounts to different categories of tax form, keeping everything organized. Both Xero and QuickBooks Online have their own versions of transaction tracking tags, but QuickBooks Online is the winner in this arena.
- In addition to the shared features listed above, both QuickBooks and Xero have inventory management tools.
- Email support is available, but it may take up to one day to receive a response to your inquiry.
- The Established plan also supports a multi-currency function, which converts 160 different foreign currencies into your business’s local currency.
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There are a handful of differences between the features of QuickBooks Online and Xero. Xero has a more impressive contact management feature with smart lists for targeting specific customers. However, QuickBooks Online offers features you won’t find with Xero, such as mileage tracking and built-in lending, and also has stronger invoicing. QuickBooks Online takes the advantage when it comes to invoicing, offering six customizable invoice templates (compared to just one offered by Xero). It also offers mileage tracking, tax support, and (for a fee) bookkeeping services, which you won’t find with Xero.
