Xero vs QuickBooks Online: Features Comparison, Pros, Cons

freshbooks vs quickbooks vs xero

ET, so if you’re having a late-night issue trying to sort out an invoice, you’ll have to wait until morning for in-person help. Since FreshBooks is mainly software for freelancers who often don’t follow traditional working schedules, this could be a drawback, especially if you’re working in a remote time zone. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives.

Bank reconciliation

Note, each QuickBooks Live offering requires an active QuickBooks Online subscription and additional terms, conditions, limitations and fees apply. For more information about services provided by Live Bookkeeping, refer to the QuickBooks Terms of Service. QuickBooks goes beyond accounting with 750+ integrated apps, streamlining everything from payroll to customer relationships. This eliminates the need for multiple platforms, reducing time and effort while empowering smarter business decisions. However, the layout and navigation may not be as intuitive for some users, especially those who are new to accounting software.

  1. Xero’s interface feels a bit more clean-cut and professional, which is more what I’d expect from accounting software.
  2. The safety of your private data is our top priority, that’s why it’s protected by 256-bit SSL encryption—the gold standard in internet security.
  3. Its intuitive interface and helpful guides make it easy to navigate, even if you have no prior accounting knowledge.
  4. The first two plan tiers put a limit on billable clients, but not on invoices.

The first two plan tiers put a limit on billable clients, but not on invoices. QuickBooks offers a mobile app for both iOS and Android devices, allowing you to manage your finances and your business on the go. You can create and send invoices, track expenses, reconcile bank accounts, and more, all from your smartphone or tablet.

freshbooks vs quickbooks vs xero

Expenses

Includes tools that help automate the reconciliation process, along with a global search function and customizable dashboard; has a simple layout. More than 750 app integrations, including live, in-house bookkeeping. Xero and QuickBooks have similar pricing, except when it comes to QuickBooks Desktop. The Enterprise Desktop plan offered by QuickBooks starts at $1,922 per year.

FreshBooks includes unlimited time and mileage tracking with all plans. You can automatically track time using the mobile app, a browser extension or third-party apps like Trello and Asana. In addition, you can bill for tracked hours, track and manage time for a specific project and allow your employees to track their time (if you’re using the team members add-on). Compared side by side, Xero is clearly the winner when it comes to features. QuickBooks offers a more integrated suite of features compared to Xero.

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Plans start at $15 per month for up to 20 invoices, five bills, bank account reconciliation, receipt capture and short-term cash flow snapshots. Its $78-per-month plan also includes multiple currencies, project tracking, in-depth analytics and employee expense claims. All plans currently have a 95% off promotion for the first three months. Starting at $40 per month, add payroll to any plan using Gusto. 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. QuickBooks is also better for businesses that need to track what is the difference between revenues and earnings inventory, as it has built-in inventory management features.

QuickBooks is available both online and via desktop and is ideal for businesses that outsource their accounting tasks to a bookkeeper or accountant. This is because QuickBooks only allows up to 40 users for its highest-tiered plan, and even then, some plans require every user to pay for their own account. Xero is ideal for businesses that keep a team of bookkeepers or accountants in-house. Xero also offers some excellent optional add-ons at good value. Those interested in a full trial can get access to a 30-day free option.

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