How do you make a choice between Xero and QuickBooks? Which software is better? Read on to find out which software you must choose.How do you make a choice between Xero and QuickBooks? Which software is better? Read on to find out which software you must choose.
If you are keen on installing an accounting software on your hard disk, then go ahead with QuickBooks. However, using Xero is a great way to take advantage of technology. It is anonline accounting solution and not a streamed down version of a desktop accounting software. Xero offers quick dashboard access. You can also match your transactions in Xero. There is also a handy discuss tab where you can classify your bank transactions.
QuickBooks on the other hand has to be installed on a hard drive and the cost of the software increases with every new user. This software also requires a server for multiple users. If you want to share information with a CPA, you will have to give access to the server or exchange the downloaded file. Another disadvantage of QuickBooks, is that it forces you to update its software every few years.
Both these products are great for bank synchronization, bank reconciliation, accounts payable, accounts receivable, inventory, invoicing, bill management, payroll, financial reporting, cashflow and document sharing to name a few.
Xero Vs QuickBooks
1. Easy bank reconciliation: QuickBooks and Xero enables users to sync bank accounts and download bank transactions, but only Xero allows you match previously recorded transactions with your bank transactions at the click of a button.
2. Bank rules for quick transactions: Bank rules are used to define how a bank transaction will be recorded. While Xero has hand this function for a long time, QuickBooks only incorporated bank rules into their system last year and is yet to catch up with Xero.
3. Anytime accessibility and collaboration: If you use Xero, you can access your accounting records on an anywhere, anytime basis, as all that you would need is an internet connection. Similarly, you accounting can access your bookkeeping information in real-time. This makes for quicker and easier decision making.
4. 350 Plus add-ons: While both Xero and QuickBooks have add-ons, to increase the functionality of the software, it is only Xero that has over 350 plus add-ons and counting. Stitch Labs, Shopify, PayPal, and Magento are some of the popular add-ons in Xero.
5. The files function: Each Xero account has a unique email address, wherein you can email documents for storage or attach files for transactions. There is even a drag and drop option in files. With files, you can keep all your accounting documents in one place.
6. The price: In Xero, the starter plan is $9 per month, while the standard plan is at $30 per month. The premium plan is $70 per month. No matter the version of Xero you choose, you will not incur additional expenses for every new user. The simple start up plan for QuickBooks is at $ 12.95 for a single user, while the essential plan is at $26.95 for three users. The plus plan at $39.95 per can be used by five users.
Are you still unsure about trying Xero for your business? Read more about outsourcing Xero accounting services.
Interested to know more?
- The Benefits of Outsourcing Accounting Services to India
- Free Yourself from Daily Accounting Chores with a Virtual Accountant