It has always been difficult for businesses to choose the best accounting software from different accounting software. Before choosing one software, you need to understand its functions and features. After that, you need to compare them to choose the one that matches your requirements. In today’s blog, we’ll discuss two software: QuickBooks and Xero. Let’s get started:
Overview of QuickBooks Online and Xero for Businesses
QuickBooks Online and Xero are web-based accounting software platforms, and both are popular and widely used for their extensive features, user-friendliness, and flexibility. Both can be comparable in various aspects. Apart from similarities, you may be curious to know the difference between QuickBooks Online and Xero.
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Xero – Cloud-Based Accounting Software
Let’s first start with Xero accounting software that offers three plans, i.e. starter, standard, and premium 5. It was founded in 2006 and has 3.7 million subscribers as of 2023 operating in New Zealand, Australia, and the United Kingdom. The following are features of Xero:
- It helps you with paying and tracking bills on time. As a result, you can have a clear idea of your accounts payable and cash flow.
- Xero offers expense management tools that allow you to manage spending and submit expense claims.
- You can set up bank feeds by connecting your bank to Xero.
- It accepts online payments by debit card, credit card, or direct debit from your Xero invoice.
- You can track costs and profitability with projects.
- Xero calculates GST and prepares business activity statements. You can submit your BAS from Xero to the ATO.
- Using online payroll software, you can pay staff and report payroll details to the Australian Taxation Office.
- You can use Xero’s bank reconciliation software to confirm that the transactions in your bank accounts are recorded in the financial records of your business.
- You can use Xero for online file storage. It helps you manage and share contracts, documents, receipts, and bills from anywhere.
- It allows you to track your finances with accounting reports.
- Using Xero online accounting, you can automate reminders, send invoices, and so much more.
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QuickBooks – Cloud Accounting for Small Businesses
QuickBooks by Intuit is an accounting software for small businesses that help them to manage expenses and income and keep track of financial status. It allows the user to pay bills, invoice customers, generate financial reports, and prepare taxes. Quickbooks cloud accounting offers various features to simplify the QuickBooks accounting process. However, you must know each feature of this software to stay organised to use its full potential. The following are some features offered by QuickBooks:
- With QuickBooks, you can manage your business, access your account, and keep yourself organised anywhere, anytime on your computer, tablet, or mobile.
- It facilitates you with creating custom and professional invoices, and sales receipts.
- You can use the banking integration feature of QuickBooks online software to update your statements and transactions automatically.
- You can see how your business is performing using personalised reports and dashboards.
- Using QuickBooks online, you can manage cash flow.
- You can track employee time and billable hours. By tracking billable hours by employee or client, you can add them to invoices.
- You can easily control your books with permission. Additionally, you can invite your accountant to access your business books for collaboration.
- With the subscription to QuickBooks online, mobile apps are included to help you access information from your smartphone or tablet.
- You will be provided with free unlimited support to get answers to your questions.
What Should You Choose: Xero or Quickbooks Online?
Now, the question arises, what accounting software you should choose for your business? Well, after going through these features, you can better know what would be the best match for your business’s operations. Many accounting firms prefer using Xero and Quickbooks Online accounting software because of their numerous features.
Conclusion
The blog shares different features of Quickbooks Online and Xero to help businesses choose the accounting software that best matches their requirements. For further help, you can get in touch with Reliable Bookkeeping Services provider to know what accounting software we use.