XERO and QuickBooks Online are two software with several standard features, but you can decide which to select according to your accounting needs. or you could choose Wavesapp, if you want to cut your cost down. The comparison which will follow will help you to select the software that suits you.
When to use QuickBooks Online?
If you are looking for a software that allows a large number of users, XERO is your best bet because it allows unlimited users. However, for software most accountants rely on, QuickBooks Online will be the best one to pick. You can set up QuickBooks by yourself without much trouble because they have created an ecosystem of ProAdvisors in North America. This means you need not run here and there looking for local accountants to set your software up. In addition to that, QuickBooks comprise live telephone and chat support. Moreover, you can receive a 50% off from QuickBooks online for that for a limited period.
When to Use XERO
XERO is more affordable than QuickBooks when it comes to a way to process payroll for staff with less than ten employees. Plus, it does not cost you anything for additional users.
How XERO and QuickBooks are Assessed
There are some features that accountant software should fundamentally include. We used a few criteria to compare the two software like their costs, how easy they are to use, setting up and customer support. They are as follows.
· Cost – Pricing plans affordable for small businesses
· Ease of Setup/Use – Setting up the software is effortless, and the software is perceptive
· Manage Accounts Receivable – Charging customers and trace open balances
· Manage Account Payable – Tracing unpaid bills and track payments
· Give Other Users Access – Allowing access for other users (like your bookkeeper)
· Customer Support Options – Accessing customer support and available self-help tools
· Payroll Processing – Computing paychecks and paying payroll taxes
After testing both software using the above criteria, the results show that both met all the given options except for one instance. XERO software does not have any live customer support available. QuickBooks Online, on the other hand, features live customer support in all support plans. So here goes our recommendation under this categorization: QuickBooks Online.Available Features and Pricing
Under these criteria, XERO and QuickBooks Online are very similar to each other. However, as the massive ecosystem and its customer service of QuickBooks Online are exceptions that XERO does not possess, QuickBooks Online gets the lead again. This ecosystem it has makes it easier for you to find a professional accountant or a bookkeeper with expertise in the software.
Both their active accounts receivable modules allow you to create custom invoices, email invoices to your customers and receive online payments. You can also list a detailed accounts receivable ageing report to confirm the unpaid invoices.
Managing bills in QuickBooks Online is only possible in two plans out of three plans. The QuickBooks Online Essentials and QuickBooks Online Plus. However, this is available in all three plans offered in XERO.
Allowing Access to Other Users
Both software allows multiple users to your bookkeeping data, but, the number of users allowed by some of the QuickBooks Online plans is limited. QuickBooks Online Essentials allows up to five users when QuickBooks Online Plus allows seven users. XERO allows unlimited users to access your data and so beats QuickBooks Online under this topic.
Bank and Credit Card Integration
Both XERO and QuickBooks Online are capable of connecting with your bank account or your credit card accounts. Then it will automatically download the data into the bookkeeping software. In fact, it is a matter of minutes when it comes to QuickBooks Online.
Though both software allows you to keep track of what you are selling, they are not available on starter plans. However, it is available in QuickBooks Online Plus, XERO Growing and XERO Premium editions.
Same as the inventory tracking, multicurrency is only available in advanced plans. It will help you to do transactions with customers in different countries, and then exchange rate calculations will be done by the software itself. Both of them could help you to track exchange gain or loss.
T4 and T4s Reporting
Plans such as QuickBooks Online Plus, XERO Growing and XERO Premium plan grants you this feature allowing you to track payments made to contractors. This way, you can meet the T4s reporting requirements. Or T4 if you purchase payroll feature.
Budgeting and Forecasting
XERO does not contain this feature in any of their plans. QuickBooks Online, on the other hand, does have this feature but only in the best pricing plan: QuickBooks Online Plus. Using this, you can create income and expense budgets and create budgets for jobs or customers in particular.
You will find satisfying payroll options in both XERO and QuickBooks Online.