Xero vs Quickbooks – Which Is Best for Your Business?

Cloud accounting is an overcrowded market; two of biggest names in this space are Xero and QuickBooks Online.

When you have two very capable accounting software options, with almost identical offerings and similar feature set, It’s hard to know which is better for your business. That’s what we’re here to find out.

Plug: TeamWave is an integrated CRM, Project Management & HR platform for small business. TeamWave has deep integration with both Quickbooks & Xero.

Zero VS QuickBooks Online
Tie Accounting Tie
Features
Tie Pricing Tie
Tie Hardware & Software Requirements Tie
Users & Permissions
Ease of Use
Tie Customer Service & Support Tie
Negative Reviews & Complaints
Positive Review & Testimonials
Integrations
Security
? Final Verdict ?

Overview

Xero is a New Zealand-based accounting software that rivals QuickBooks in terms of capability and popularity. It offers strong accounting, access for unlimited users, over 700 integrations, and an effective feature selection.

QuickBooks is the accounting industry leader. With advanced accounting features, refined invoicing, 550+ integrations, and a lending feature, it’s easy to see why the software is so renowned by accountants and bookkeepers.

In this article, our goal is to help you find the best accounting software for your business needs. To make your decision easier, we’ve carefully researched and tested both products. We’ll compare Xero and QuickBooks based on features, pricing, customer experience, reliability, and more, so you don’t have to.

Accounting

Winner: Tie

For its cloud-based accounting, both Quickbooks Online and Xero offer strong accounting services. Both software has powerful accounting features including bank reconciliation, accounts payable, and lots of accounting reports. Each uses double-entry accounting and advocates cash-basis and accrual accounting.

Features

Winner: Quickbooks Online

Features Xero QuickBooks Online
Unlimited quotes and invoices Available in Standard

and Premium

Recurrent invoicing Available in Standard

and Premium

Available in Essentials

and Plus

Purchase orders Available in Plus
Bank Feeds
Inventory Basic functionality; integrates

with inventory management

Available in Plus
Payroll Employee numbers limited by

subscriptions; basic payroll functionality.

10 employees included,

$4 for each additional

employee

Multiple currencies Available in Premium Available in Essentials

and Plus

Tax Support
Lending

Both companies offer similar features. In some features such as invoicing, and lending, QuickBooks exceeds Xero. In other features like contact management, Xero provides better service than QBO. So how do we decide who is better?

Xero used to be the clear winner when it used to include most of the features in all of their versions and pricing plans, while Quickbooks limited access of many to their Plus accounts. But now, Xero restricts advanced features to expansive plans like QuickBooks.

Thus, it all comes down to the details. Xero offers limited invoice templates while Intuit’s QuickBooks offers lending and great invoicing with multiple templates to choose from as well as built-in packing slips.

However, for example, if you’re a startup who needs the basic features of time tracking, you’d find yourself needing the Plus plan on Quickbooks versus any version with Xero.

Pricing

Winner: Tie

Xero offers three pricing plans that run between $9 and $40 per month whereas QuickBooks has four pricing plans between $20/mo  and $70/mo. However, QBO may charge you more depending on how many employees you need to be able to access it, while Xero is one payment for unlimited access.

In terms of pricing, the clear winner will depend on the size of your business.

For small businesses, Quickbooks may have an edge because of slightly lower pricing for higher-tier plans, but Xero’s transparency of unlimited users, no matter your plan — makes it a winner for medium to large businesses.

Hardware & Software Requirements

Winner: Tie

As long as you have internet access, you can access QuickBooks with nearly any device using one of the following browsers:

  • Google Chrome
  • Mozilla Firefox
  • Internet Explorer 10+
  • Safari 6.1+

Since Xero is also cloud-based software, it can also be compatible with almost any device with internet access and works with any one of these browsers:

  • Google Chrome
  • Internet Explorer 11
  • Microsoft Edge
  • Mozilla Firefox
  • Safari 8+

Both Quickbooks Online and Xero were built for the cloud, and come with free mobile apps for Android and iOS.

Users & Permissions

Winner: Xero

For all three of its pricing plans, Xero allows access to as many users as you need, plus it also offers incredibly powerful user permissions so you can control who has access to which features.

QBO supports users based on their pricing plans. It also has strong user permissions, but in the end, you can’t beat the unlimited users.

Ease of Use

Winner: QuickBooks Online

Although both QuickBooks Online and Xero have steep learning curves, QBO offers a well-organized UI which makes it easy to get used to the software and learn how it works.

Xero, on the other hand, is only easy to use once you get to know the software. The setup and learning curve of Xero can be quite intensive. However, it does have great support tutorials and tools to get over the learning curve, but apart from occasional navigational difficulty, QBO is definitely easier to use.

Customer service & support

Winner: Tie

Xero was known for its great customer service but has recently declined to the same level as QBO (which is somewhere Xero does not want to be). Xero doesn’t have a customer phone support or a telephone helpline and it often takes a day for email responses. However, Xero does have great tutorials and support alternatives to help you learn and troubleshoot the software.

QuickBooks is known for poor customer support. However, QuickBooks does offer customer phone support but wait times and holds are often long. Although QBO made some strides to shorten their wait time, users still aren’t happy with QBO’s support or the lack of email support.

Negative Reviews & Complaints

Winner: QuickBooks Online

This is a category where both companies should not want to win, and yet here they are.

QBO has received many customer complaints concerning poor customer assistance, bugs, limited mobile apps, and even unauthorized charges.

While Xero has fewer complaints than QBO. However, users still have concerns with Xero’s limited mobile apps, steep learning curve, and price changes.

Positive Reviews & Testimonials

Winner: Xero

While QBO has more positive reviews but on the whole, Xero users are happy with their experiences since it receives a higher percentage of positive to negative reviews.

Apps & Integrations

Winner: Xero

Both QBO and Xero have huge app libraries that can make your day-to-day business administration easier, With Xero has over 700 integrations, while QuickBooks Online comes in with 590 integrations. If integrations are important to you, Xero is the way to go.

Security

Winner: Xero

Security Features Xero QuickBooks Online
SSL Security encryption Transport Layer

Security (TLS)

encryption

Automatic backups
Session security audit trails ✘ (deleted transactions

can be viewed)

 

Both QuickBooks Online and Xero use strong data encryption and powerful security measures.  However, Xero has one of the strongest security reputations in the cloud accounting market with 99.97% uptime. On the other hand, QuickBooks users have reported downtime and outage issues on several occasions.

 

And the Winner Is…

quickbooks_online

Xero certainly lives up to their tagline of “beautiful accounting software,” with an intuitive interface but a recent change in price structure, Xero has lost the key points that set it apart. While Xero is still great software, a few recent QBO updates were just enough for QuickBooks Online to edge out the competition.

When it comes to reliability, Intuit’s Quickbooks is top-rated for small business accounting for it’s amazing invoicing automation, lending features and more. Although Xero didn’t win this match-up, it still has a ton to offer and might be the better fit for your business.

Just because QBO is the winner here does not mean that it’s the best choice for your company. Xero can be ideal for businesses looking for scalable software that will grow with their company. Every business and every accountant will need something different out of accounting software. So, the decision of choosing between QBO and Xero should be based on what’s best for your business needs and preferences.

As long as Xero keeps their quality of service and advertised features as they grow, they are a great alternative to your business accounting needs. Or, you may find that neither company meets your needs entirely,  then be sure to explore the many other business accounting software options out there for you.

Best Productivity Tools for Small Businesses in 2019

Small business owners are finding it increasingly difficult to manage multiple moving parts and run a thriving company. It’s a constant struggle to get everything done.
Small business success depends on how efficiently and productively the business owner can use tools to handle virtually every single business process an organisation can have.

Here is a list of the best productivity apps for small businesses in 2018:

1. G Suite Business Solutions

Google’s GSuite offers a number of productivity enhancing features for small to mid-sized businesses. GSuite is a great place to start conducting some of the most essential operations a modern small business must undertake, such as setting up a business email client, document sharing, managing calendar, launching an online ad campaign, or tracking traffic stats for websites. GSuite offers a wide range of services in one place quite conveniently.
GSuite even has an app for Google’s cloud storage platform, which will allow users to work and access files from anywhere in the world. The GSuite is also recommended for its enhanced business-grade security features. Perhaps the biggest advantage is the flexible and affordable pricing structure. Small businesses can use GSuite for as little as $10 per month, which comes with unlimited cloud storage and archiving.

Note: TeamWave offers native and seamless integration with G Suite.

2. Slack

Slack is the team communications app all businesses must have these days. Slack is a streamlined instant messaging application that is enhanced for business use. There are loads of IM apps out there that businesses can use. However, these IM apps are intended for two-person communication, not group communication as businesses require. So it’s easy to get bombarded with notifications and messages with regular apps. Slack eliminates such annoyances and offers an optimized chatting platform for teams that work together.
Slack offers perks like separating group conversations, setting some conversation modes into public or private, direct messaging, an auto archiving of all messages and other material that gets shared. Businesses can add as many users as desired without limit. Slack has expanded services from IM and is now capable of file sharing and phoning too.

3. Boomerang for Gmail

Boomerang is an add-on for Gmail, and possibly the best add-on a business can use. Boomerang allows Gmailers to schedule emails and tracking responses. For example, if your business needs to spend a particular email at midnight on Friday to the dot, you don’t have to stay up that late to do so with Boomerang. You can use the add-on to specify times and dates for certain emails to be sent. This is an absolutely essential service for companies that manage email marketing campaigns. Boomerang is also AI-enhanced and can improve the overall quality of emails as well.

4. Intercom

One of the most challenging aspects of managing and growing a business, especially a web-based company, is the lack of communication with customers. There are huge barriers when it comes to educating customers and understanding consumers. The eventually leads to flawed user interface decisions, limited of awareness of customer issues and needs and substandard user experience. Intercom offers a suite of features to provide live chat, customer on-boarding, action-based email triggers and more for your users, making it easier to interact, engage and communicate with your customers.

5. FreshBooks

Creating invoices is an important but tedious task when running a small business. FreshBooks is an innovative new app that allows small businesses to simplify the invoice creation and sending process. Instead of sending a rather boring invoice, businesses can use Freshbooks to design personalized or branded invoices. The biggest perk of the app, however, is the ability to organize invoices and track them. The app also enables users to set up automatic billing for recurring invoices, and accept credit card mobile payments. Also, users can trace profits and losses by aggregating all information in the invoices in one place. FreshBooks can be used to generate business reports that can track overall finances.

6. MailChimp

MailChimp is the email marketing app businesses need to run a successful and effective campaign. Mail Chimp facilitates many services that are considered necessary for modern digital marketing campaigns. The app is mainly known for allowing users to create and manage large mailing lists. Users can use Mail Chimp to create and send email newsletters. Mail Chimp offers templates to design customized emails and data analysis tools to assess how an emailing campaign has been. Mail Chimp is quite easy to use on a number of devices. The app notably eliminates the need to repetitively create or send email marketing material and saves a lot of time and money for communications teams.

7. TeamWave

TeamWave is a unified platform for collaboration, sales and HR management. Your team gets a single and centralized place to collaborate which means Sales, support, development & marketing departments will be on the same page. Imagine smoothly moving from a won deal to delivery of the project in the same app without re-entering any data and avoiding data loss. As all the apps share the same information, there is no scope for data redundancy and duplicacy. The truly native integrations ensure you need to worry about data flow from one app to another and maintain integrations between vital apps. Some of the most important benefits of TeamWave:

Sales and Projects: Important files can be copied from deals to projects (example: requirement document) with a few clicks. Comes handy when you commence project delivery after winning a deal.

Sales and HR: In the HR app, if you add someone as the reporting manager of a sales rep, then the reporting manager will be automatically added as a deal follower whenever the sales rep adds a new deal. This fosters collaboration and helps in progress tracking.

Projects and HR: Project admin can keep track of the performance of the employees along with appreciation received from clients and log them as private notes in the HR app. During appraisal these notes can be reviewed for better decision making.

Use the above mentioned tools to establish and streamline processes with an aim to improve business productivity.


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